Relationship Between Institutional Pressures And Environmental Management Accounting Adoption With Special Reference To Small And Medium Manufacturing Entities In Anuradhapura District
Abstract
Environment is a vital part of an organization to being success, also having an appropriate environmental management system is leading to record environmental related activities. The study examined the relationship between institutional pressures and environmental management accounting (EMA) adoption level by applying new institutional sociology perspective. 100 small and medium manufacturing entities which are registered in Anuradhapura were selected based on convenient sampling method. Data were collected from accountants or/and proprietorof the selected entities using a structured questionnaire. Reliability analysis applied to test the reliability of the questionnaire;descriptive analysis and inferential analysis were applied to analyze the data. Hypotheses were tested by using multiple regression analysis. As per objective of (1) identifying the relationship between institutional pressures and EMA adoption, the results revealed that coercive isomorphism, normative pressures and mimetic processesare significant and moderate positively influence for the adoption of EMA. Addition to that the study (2) investigates the impact of institutional influences on EMA adoption; the findings exposed that coercive isomorphism (responses to political and legitimacy influences)playsavital role in pressuring EMAforadoption and final objective was to (3) identify the most forceful factor for the EMA adoption; the findings revealed thatcoercive isomorphism (political/ legitimacy influences) is important in managing environmental issues in SMEs?. Moreover, the findings support that SME manufacturing firms in Anuradhapura district still do not practice EMA practices with their entities.Therefore, this study recommends that the political and legitimacy influences should enhance to adopt and improve environmental management accounting practices in Anuradhapura district Manufacturing SMEs. Apart from that, the study has made attention on understanding the application of new institutional sociology perspective, also provides useful contribution to the present knowledge by exploring more explanations for environmental management accounting adoption in an unexplored context in Anuradhapura district as well as in Sri Lanka.
Keywords
Environmental management accounting, Institutional Theory, small and medium manufacturing entities, new sociology perspective
Citations
IRE Journals:
HBP Chathurangani , DHU Hemathilake
"Relationship Between Institutional Pressures And Environmental Management Accounting Adoption With Special Reference To Small And Medium Manufacturing Entities In Anuradhapura District" Iconic Research And Engineering Journals Volume 2 Issue 7 2019 Page 84-93
IEEE:
HBP Chathurangani , DHU Hemathilake
"Relationship Between Institutional Pressures And Environmental Management Accounting Adoption With Special Reference To Small And Medium Manufacturing Entities In Anuradhapura District" Iconic Research And Engineering Journals, 2(7)
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