Institutional pressures influencing environmental management accounting adoption by Malaysian local governments. Issue 3 (27th July 2021)

• Record Type: Journal Article
• Authors: Che Ku Kassim, Che Ku Hisam; Adnan, Noor Liza; Ali, Roziani
• Is Part Of: Journal of accounting & organizational change. Volume 18:Issue 3(2022)
• Page Start: 440
• Page End: 460
• Publication Date: 2021-07-27
• Subjects: Local governments -- Environmental reporting -- Environmental management accounting -- Institutional isomorphism -- Environmental disclosures; Organizational change -- Periodicals; Accounting -- Periodicals; 658.1511
• DOI: 10.1108/JAOC-11-2020-0183
• Languages: English
• ISSNs: 1832-5912

Abstract

Abstract : Purpose: Because of the heightened environmental awareness of the public, local governments (LGs) are being pressured to improve on the extent and quality of environmental disclosures (EDs) provided in an array of reporting media. The lack of an accounting tool to identify, measure and report EDs has propelled the infusion of environmental management accounting (EMA) to support the reporting practices. This paper aims to examine the institutional pressures influencing EMA adoption by Malaysian LGs. Design/methodology/approach: Using the consensus approach, a self-administered questionnaire survey is conducted on accountants in LGs in Peninsular Malaysia. The items in the questionnaire are based on the findings of prior studies on EMA adoption. Findings: The results suggest that coercive isomorphism from the state government is perceived to be the influential institutional factor placing intense pressures on LGs to adopt EMA. Research limitations/implications: The results solidify the potential role of the state government in any public policy changes which could further stimulate and promote the adoption of EMA. Originality/value: Insufficient empirical evidence on the adoption of EMA in LGs within a developing country's perspective contributes to a limited understanding on the development of environmental-related practices in different economic stages and environment as well as within the public sector's perspective.