The moderating role of environmental management accounting between environmental innovation and firm financial performance. (2018)

• Record Type: Journal Article
• Authors: Saeidi, Sayedeh Parastoo; Othman, Mohd Shahwahid Haji; Saeidi, Parvaneh; Saeidi, Sayyedeh Parisa
• Is Part Of: International journal of business performance management. Volume 19:Number 3(2018)
• Page Start: 326
• Page End: 348
• Publication Date: 2018
• Subjects: product innovation -- process innovation -- environmental management accounting -- EMA -- firm performance -- small medium enterprises -- Iran; Industrial management -- Periodicals; 658.005
• Languages: English
• ISSNs: 1368-4892

Abstract

The purpose of this paper is to investigate the relationships among innovation, environmental management accounting (EMA), and firm's financial performance. Specifically, this study explores the relationships of both product and process innovations with financial performance. Furthermore, this study examines the moderating role of EMA on the above relationships. Data were collected in a survey of top managers of the SMEs in manufacturing and consumer product industries in Iran, using a questionnaire. Hierarchical regression analysis was used to test all hypotheses. The findings revealed that both product and process innovations have positive relationships with firms' financial performance, while this effect is significant about product innovation and not significant about process innovation. Moreover, contrary to expectations, this study found a negative moderating effect of EMA on the relationship between process innovation and financial performance. However, no moderating effect of EMA was found on product innovation and financial performance relationship.