Building Environmental Management Accounting in Shipping Industry

  • Maulita Maulita Politeknik Negeri Samarinda
  • Ari Wibowo Politeknik Negeri Samarinda
  • Herdi Syam Politeknik Negeri Samarinda
Keywords: Environmental Management Accounting (EMA), Coersive Pressure, Green Shipping, Regulatory Pressure

Abstract

Sustainable development is an international issue of concern to the industry, including the shipping industry. The dense activity of the shipping industry makes the shipping industry one of the contributors to environmental pollution. Therefore, environmental accountability is one of the important aspects of corporate social responsibility to reduce the environmental damage caused by company activities. Environmental Management Accounting can improve environmental sustainability by evaluating information related to finance and the physical environment in the shipping industry. Coersive pressure, Green Shipping and Regulatory Pressure of the shipping industry are variables that in this study are considered to influence the adoption of Environmental Management Accounting. 120 questionnaires are distributed via WhatsApp, and as many as 100 questionnaires can be processed. The research data was analysed using Smart PLS. This study found that Coersive Pressure did not significantly affect EMA adoption in the shipping industry. In contrast, Green Shipping and Regulatory Pressure positively and significantly affected EMA adoption in the Shipping industry. The study concluded that Green Shipping and regulatory Pressure positively and significantly affected EMA adoption in the shipping Industry. In contrast, Coersive Pressure did not positively and significantly affect EMA Adoption.

References

Abdulaziz, N. A., SENIK, R., YAU, F. S., SAN, O. T., & ATTAN, H. (2017). Influence of Institutional Pressures on the Adoption of Green Initiatives. International Journal of Economics & Management, 11.
Azmawani, A. R., Siew, N. I., Murali, S., & Florence, W. (2013). Training and Organizational Effectiveness: Moderating Role of Knowledge Management Process. European Journal of Training and Development, 37(5), 472–488. https://doi.org/10.1108/03090591311327295
Asiri, N., Khan, T., & Kend, M. (2020). Environmental management accounting in the Middle East and North Africa region: Significance of resource slack and coercive isomorphism. Journal of cleaner production, 267, 121870.
Berrone, P., Fosfuri, A., Gelabert, L., & Gomez‐Mejia, L. R. (2013). Necessity as the mother of ‘green’inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891-909.
Benamara, H., Hoffmann, J., & Youssef, F. (2019). Maritime transport: The sustainability imperative. Sustainable shipping: A cross-disciplinary view, 1-31.
Bernard, H. R. (2013). Social Research Methods: Qualitative and Quantitative Approaches (2nd ed.). Sage.
Bird, R. M. (2015). Improving tax administration in developing countries. Journal of Tax Administration, 1(1), 23–45. https://doi.org/10.1017/CBO9781107415324.004
Bose, R. (2002). Customer Relationship Management: Key Components for IT Success. Industrial Management and Data Systems, 102(2), 89–97. https://doi.org/10.1108/02635570210419636
Busanad, A. M. (2016). Implementing KM in a Public Organization : The Case of the Dubai Police Force. Unpublished Ph.D Thesis, Business School, University of Portsmouth.
Burritt, R. L., Hahn, T., & Schaltegger, S. (2002). Towards a comprehensive framework for environmental management accounting—Links between business actors and environmental management accounting tools. Australian Accounting Review, 12(27), 39-50.
Cardoso, L., Meireles, A., & Peralta, C. F. (2012). “Knowledge management and its critical factors in social economy organizations.” Journal of Knowledge Management, 16(2), 267–284.
Creswell, W. J. (2007). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (2nd editio). Sage Publications.
Christ, K. L., & Burritt, R. L. (2013). Environmental management accounting: the significance of contingent variables for adoption. Journal of Cleaner Production, 41, 163-173.
Curado, C., & Bontis, N. (2006). The Knowledge-Based View of the Firm and its Theoretical Precursor. International Journal of Learning and Intellectual Capital, 3(4), 367–381.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American sociological review, 147-160.
Deegan, C. (2017). Twenty five years of social and environmental accounting research within Critical Perspectives of Accounting: Hits, misses and ways forward. Critical Perspectives on Accounting, 43, 65-87.
Downes, T. V. (2014). An Evaluation of Knowledge Management Practices in Nonprofit Community Services Organisations in Australia. Unpublished DBA Thesis, Southern Cross Business School, Southern Cross University.
Fuadah, L. L., Kalsum, U., & Arisman, A. (2021). Determinants factor influence environmental management accounting and corporate environmental performance: evidence in Indonesia. Journal of Southwest Jiaotong University, 56(3).
Gibassier, D., & Alcouffe, S. (2018). Environmental management accounting: the missing link to sustainability?. Social and Environmental Accountability Journal, 38(1), 1-18.
Gerring, J. (2007). Case Study Research Principles and Practices. Cambridge University Press.
Grant, R. M. (1996). Toward a Knowledge-Based Theory of the Firm. Strategic Management Journal, 17(Winter Special), 109–122.
Heisig, P. (2016). Knowledge Management in Public Administration in Four European Countries: Example from Austria, Germany, Swizerland and the United Kingdom. In F. Batista (Ed.), Internacionais de Implementacao da gestao do Conhecimento no Setor Publico (pp. 139–173). Rio de Janeino: Instituto de Pesquisa Economica Aplicada.
Huang, W. R., & Su, C. H. (2016). The mediating role of job satisfaction in the relationship between job training satisfaction and turnover intentions. Industrial and Commercial Training, 48(1), 42–52. https://doi.org/10.1108/ICT-04-2015-0029.
Heugens, P. P., & Lander, M. W. (2009). Structure! Agency!(and other quarrels): A meta-analysis of institutional theories of organization. Academy of management journal, 52(1), 61-85.
Hossain, M. M. (2019). Environmental accounting challenges of selected manufacturing enterprises in Bangladesh. Open Journal of Business and Management, 7(02), 709.
Idris K. M., & Kolawole, A. R. (2016). Influence of Knowledge Management Critical Sucess Factors on Organisational Performance in Nigeria Construction Industry. Ethiopian Journal of Environmental Studies & Management, 9(3), 315–325.
Johnstone, L. (2018). Theorising and modelling social control in environmental management accounting research. Social and Environmental Accountability Journal, 38(1), 30-48.

Latan, H., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Wamba, S. F., & Shahbaz, M. (2018). Effects of environmental strategy, environmental uncertainty and top management's commitment on corporate environmental performance: The role of environmental management accounting. Journal of cleaner production, 180, 297-306.
Mokhtar, N., Jusoh, R., & Zulkifli, N. (2016). Corporate characteristics and environmental management accounting (EMA) implementation: evidence from Malaysian public listed companies (PLCs). Journal of Cleaner Production, 136, 111-122.
Mansor, M. (2011). Application of a Framework for Tax Administration Performance Management in Developing Countries : A Case Study in Malaysia. Unpublished Ph.D Thesis, Australian School of Business, University of New South Wales.
Maritime Safety Committee. International maritime organization (imo)(2017) guidelines on maritime cyber risk management.
Nyahuna, T., & Doorasamy, M. (2022). Is Mandatory Ecological Information Disclosure Linked with Real Ecological Performance? Evidence from Gauteng Local Government, South Africa. Journal of Environmental Management & Tourism, 13(7), 1970-1977
Ocheni, S. (2015). A Causality Analysis between Tax Compliance Behaviour and Nigerian Economic Growth. Mediterranean Journal of Social Sciences, 6(1), 577–582. https://doi.org/10.5901/mjss.2015.v6n1s1p577
OECD. (2019). Revenue Statistics in Africa ─ Nigeria. Revenue Statistics in Africa. oe.cd/revenue-statistics-in-africa
Okoh, U., Mansor, M., & Ibrahim, M. (2020). Motivation as a Critical Success Factor to Knowledge Management Efficiency and Tax Administration Performance. Malaysian Journal of Qualitative Research, 6(2), 32–41.
Okoh, U., Mansor, M., & Ibrahim, M. (2021). Improving knowledge management efficiency and tax administration performance through leadership styles and skills. Malaysian Journal of Qualitative Research, 7(2), 70–84.
Roxas, B., & Coetzer, A. (2012). Institutional environment, managerial attitudes and environmental sustainability orientation of small firms. Journal of Business Ethics, 111, 461-476.
Rosdi, I. S., Chew, K. W., Samsudin, N., & Hassan, S. (2016). Transforming Knowledge Management at Inland Revenue Board of Malaysia. Knowledge Management and E-Learning, 8(2), 259–270.
Rusland, S. L., Jaafar, N. I., & Sumintono, B. (2020). Evaluating knowledge creation processes in the Royal Malaysian Navy (RMN) fleet: Personnel conceptualization, participation and differences. Cogent Business and Management, 7(1), 1–25. https://doi.org/10.1080/23311975.2020.1785106
Rios, L. M., Jones, P. R., Moore, C., & Narayan, U. V. (2010). Quantitation of persistent organic pollutants adsorbed on plastic debris from the Northern Pacific Gyre's “eastern garbage patch”. Journal of Environmental Monitoring, 12(12), 2226-2236.
Sejdija, F. (2012). Knowledge Management in Public Adminisration: Critical Success Factors and Recommendations. University of East London.
Saeidi,S,P. and Othman, M, S, H. (2017). The mediating role of process and product innovation in the relationship between environmental management accounting and firm’s financial performance. International Journal Business Innovation and Research, Vol. 14, No. 4 pp 421- 438 and firm’s financial performance. International Journal Business Innovation and Research, Vol. 14, No. 4 pp 421- 438.
Shujahat, M., Sousa, M. J., Hussain, S., Nawaz, F., Wang, M., & Umer, M. (2019). Translating the impact of knowledge management processes into knowledge-based innovation: The neglected and mediating role of knowledge-worker productivity. Journal of Business Research, 94(November), 442–450. https://doi.org/10.1016/j.jbusres.2017.11.001.
Phan, T. N., Baird, K., & Su, S. (2017). The use and effectiveness of environmental management accounting. Australasian Journal of Environmental Management, 24(4), 355-374.
Poulsen, R. T., Ponte, S., & Lister, J. (2016). Buyer-driven greening? Cargo-owners and environmental upgrading in maritime shipping. Geoforum, 68, 57-68.
Takeuchi, H. (2006). The New Dynamism of the Knowledge-Creating Company. In T. Takeuchi, H., & Shibata (Ed.), Japan Moving Toward a More Advanced Knowledge Economy: Advanced Knowledge-Creating Companies (pp. 1–9). World Bank Institute (WBI).
Ternes, D. C. (2012). Confirming the Stankosky Knowledge Management Framework. A Doctor of Science Dissertation, School of Engineering and Applied Science, George Washington University.
Tharenou, P., Saks, A. and Moore, C. (2007). A review and critique of research on training and organizational-level outcomes. Human Resource Management Review, 17(3), 251–273.
Umale, O., Mansor, M. B., & Ibrahim, M. B. (2019). A System-Based Knowledge Management Framework for Tax Administration Performance. Journal of Business and Management, 21(10), 40–43. https://doi.org/10.9790/487X-2110054043
Umale, O., Mansor, M. B., & Ibrahim, M. B. (2020). Role of Organizational Structure in Knowledge Management Efficiency and Tax Administration Performance: a Case Study of Federal Inland Revenue Service Nigeria. International Journal of Economics, Commerce and Management, 8(3), 278–288.
Wang, S., Noe, R. A., & Wang, Z. (2014a). Motivating Knowledge Sharing in Knowledge Management Systems : A Quasi – Field Experiment. 40(4), 978–1009. https://doi.org/10.1177/0149206311412192
Wang, S., Noe, R. A., & Wang, Z. (2014b). Motivating Knowledge Sharing in Knowledge Management Systems : A Quasi – Field Experiment. Journal of Management, 40(4), 978–1009. https://doi.org/10.1177/0149206311412192
Yin, R. K. (2009). Case Study Research: Design and Methods (4th ed.). Thousand Oaks, CA: SAGE.
Wu, X., Cobbina, S. J., Mao, G., Xu, H., Zhang, Z., & Yang, L. (2016). A review of toxicity and mechanisms of individual and mixtures of heavy metals in the environment. Environmental Science and Pollution Research, 23, 8244-8259.
Published
2023-11-24
How to Cite
Maulita, M., Ari Wibowo, & Herdi Syam. (2023). Building Environmental Management Accounting in Shipping Industry. Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 1411-1430. Retrieved from http://www.ajmesc.com/index.php/ajmesc/article/view/571