Environmental Management Accounting, Environmental Innovation and Corporate Environmental Performance

Abstract

This study was conducted to further investigate the relationship between the application of environmental management accounting of ISO 14001 certified companies and corporate environmental performance through, environmental innovations. This study uses the theoretical framework of RBV (Resource Based View) and NRBV (Natural Resource Based View), these two theories explain company's environmental strategy in affecting corporate environmental performance as based on company’s specific resource.

The study was conducted using a quantitative approach where the unit of analysis is an ISO 14001 certified company located in Indonesia which holds the certification up to 2013. Primary data were used in this study; primary data was generated from the survey through questionnaires distributed to the entire ISO 14001 certified companies. ISO 14001 certified companies list were obtained from KLH RI, Environmental Management System Certification Institute which is accredited by the National Accreditation Committee (KAN), various newspapers and company websites with the aim to find information from companies that have implemented environmental management system.

Empirical evidence suggests that there is a positive and significant influence between environmental strategy and the use of environmental management accounting, the use of environmental management accounting to environmental innovation, and as well as the use of environmental management accounting towards corporate environmental performance. There is a positive and significant influence between environmental innovation to corporate environmental performance. There is no significant influence between environmental strategy and environmental innovation. However, the results of this study suggest a solid foundation that intangible assets such as corporate environmental strategy (by using accounting practices particularly on environmental management accounting) improve corporate’s environmental performance though environmental innovation.