Author

  • Che Ku Hisam Che Ku Kassim

    • Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Terengganu, Kampus Dungun, Malaysia
    • Malaysia

Abstract

Despite the numerous benefits that environmental management accounting (EMA) offers, its adoption by the public sector in developing countries seems to be progressing slowly. Therefore, the purpose of this paper is to examine the organizational determinants influencing the adoption of EMA by Malaysian local councils. A self-administered questionnaire survey was conducted among accountants at local councils in Peninsular Malaysia using a consensus approach. The questionnaire items are based on prior studies on EMA adoption. The results suggest that an internal environmental committee plays a significant role in encouraging local councils to adopt EMA. This committee is responsible for planning, monitoring, measuring, and reporting environmental performance, for which EMA is needed to provide pertinent information. The research provides an impetus for other local councils to set up their in-house environmental committee to promote EMA adoption and subsequently improve the generation of information for more accurate measurement of environmental performance. Since research on EMA adoption in the public sector is relatively scarce, it contributes to a limited understanding of the internal and external factors that influence its adoption. Therefore, the paper offers useful insights to relevant authorities, such as federal and state governments, on policy changes that could enhance EMA adoption within public sector organisations.

Keywords

References

  • Burritt, R. L., Schaltegger, S., & Christ, K. L. (2023). Environmental management accounting – Developments over the last 20 years from a framework perspective. Australian Accounting Review, 33(107), 336-351. https://doi.org/10.1111/auar.12407
  • Che Ku Kassim, C. K. H., Adnan, N. L., & Ali, R. (2022). Institutional pressures influencing environmental management accounting adoption by Malaysian local governments. Journal of Accounting Organizational Change, 18(3), 440–460. https://doi.org/10.1108/jaoc-11-2020-0183
  • Che Ku Kassim, C. K. H., Ahmad, S., Mohd Nasir, N. E., Mod Arifin, N. N., & Wan Mohd Nori, W. M. N. (2020). Environmental disclosures on local governments’ websites: A Malaysian context. International Journal of Public Sector Management, 33(6/7), 663–679. https://doi.org/10.1108/ijpsm-03-2020-0077
  • Che Ku Kassim, C. K. H., Ahmad, S., Mohd Nasir, N. E., Wan Mohd Nori, W. M. N., & Mod Arifin, N. N. (2019). Environmental reporting by the Malaysian local governments. Meditari Accountancy Research, 27(4), 633–651. https://doi.org/10.1108/medar-02-2019-0444
  • Che Ku Kassim, C. K. H., Mohd Ariffin, A. R., & Muhmad, S. N. (2024). Environmental management accounting: A tool for better management practice. Advances in Social Sciences Research Journal, 11(9.2), 55-63. https://doi.org/10.14738/assrj.119.2.17399
  • Che Ku Kassim, C. K. H., Mohd Nasir, N. E., Ahmad, S., Wan Mohd Nori, W. M. N., & Mod Arifin, N. N. (2021). Institutional isomorphism on environmental reporting practices in Malaysian local governments. Management and Accounting Review, 20(2), 1-34. https://doi.org/10.24191/mar.v20i02-01
  • Christ, K. L., & Burritt, R. L. (2013). Environmental management accounting: The significance of contingent variables for adoption. Journal of Cleaner Production, 41, 163–173. https://doi.org/10.1016/j.jclepro.2012.10.007
  • Coakes, S.J., Steed, L., & Dzidic, P. (2006). SPSS 13.0 for Windows: Analysis without anguish, Milton Qld: John Wiley.
  • Cooper, D. R., & Schindler, P. S. (2008). Business research methods (10th ed.), Singapore: McGraw-Hill.
  • Dixon-Fowler, H. R., Ellstrand, A. E., & Johnson, J. L. (2017). The role of board environmental committees in corporate environmental performance. Journal of Business Ethics, 140, 423-438. https://doi.org/10.1007/s10551-015-2664-7
  • Ferreira, A., Moulang, C., & Hendro, B. (2010). Environmental management accounting and innovation: An exploratory analysis. Accounting, Auditing and Accountability Journal, 23(7), 920-948. https://doi.org/10.1108/09513571011080180
  • Field, A. (2009). Discovering Statistics Using SPSS (3rd ed), London: SAGE Publications Ltd.
  • Frost, G. R., & Seamer, M. (2002). Adoption of environmental reporting and management practices: An analysis of New South Wales public sector entities. Financial Accountability and Management, 18 (2), 103-127. https://doi.org/10.1111/1468-0408.00147
  • Gale, R. (2006). Environmental costs at a Canadian paper mill: A case study of environmental management accounting (EMA). Journal of Cleaner Production. 14, 1237-1251. https://doi.org/10.1016/j.jclepro.2005.08.010
  • Ghani, L. A. (2021). Exploring the municipal solid waste management via the MFA-SAA approach in Terengganu, Malaysia. Environmental and Sustainability Indicators, 12, 1-11. https://doi.org/10.1016/j.indic.2021.100144
  • Giacomini, D., Rocca, L., Zola, P., & Mazzoleni, M. (2021). Local governments’ environmental disclosure via social networks: Organizational legitimacy and stakeholders’ interactions. Journal of Cleaner Production, 317, 128290. https://doi.org/10.1016/j.jclepro.2021.128290
  • Gibson, K. C., & Martin, B. A. (2004). Demonstrating value through the use of environmental management accounting. Environmental Quality Management, 45-52. https://doi.org/10.1002/tqem.20003
  • Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., & Tatham, R.L. (2006). Multivariate Data Analysis (6th ed), NY: Pearson Prentice Hall.
  • Hasan, S. A. S., Waghule, S. N., & Hasan, M. B. (2024). Linking environmental management accounting to environmental performance: The role of top management support and institutional pressures. Cogent Business & Management, 11(1), 1-21. https://doi.org/10.1080/23311975.2023.2296700
  • Hassan, M. N., Awang, M., & Jaafar, A. B. (2006). Challenges of global environmental issues on ecosystem management in Malaysia. Aquatic Ecosystem Health and Management, 9(2), 269-283. https://doi.org/10.1080/14634980600728800
  • Ibrahim, F. W., & Md. Salleh, M. F. (2006). Stochastic frontier estimation: An application to local government in Malaysia. Malaysian Journal of Economic Studies, 43(1 & 2), 85-95.
  • Jasch, C. (2003). The use of environmental management accounting (EMA) for identifying environmental costs. Journal of Cleaner Production, 11, 667-676. https://doi.org/10.1016/S0959-6526(02)00107-5
  • Jasch, C. (2006). How to perform an environmental management cost assessment in one day. Journal of Cleaner Production, 14, 1194-1213. https://doi.org/10.1016/j.jclepro.2005.08.005
  • Joseph, C., & Taplin, R. (2011). The measurement of sustainability disclosure: Abundance versus occurrence. Accounting Forum, 35(1), 19-31. https://doi.org/10.1016/j.accfor.2010.11.002
  • Joseph, C., Pilcher, R., & Taplin, R. (2014). Malaysian local government internet sustainability reporting. Pacific Accounting Review, 26(1/2), 75-93. https://doi.org/10.1108/PAR-07-2013-0071
  • Kline, R.B. (1998). Principles and Practice of Structural Equation Modelling, NY: Guilford Press.
  • Kobeissi, N., & Damanpour, F. (2009). Corporate responsiveness to community stakeholders: Effects of contextual and organizational characteristics. Business and Society, 48(3), 326-359. https://doi.org/10.1177/0007650307305369
  • Lynch, B. (2010). An examination of environmental reporting by Australian state government departments. Accounting Forum, 34, 32-45. https://doi.org/10.1016/j.accfor.2009.11.001
  • Mandigma, M. B. S., & Omeir, A. A. M. (2024). An analysis of the financial and non-financial environmental disclosures of selected environmentally sensitive Philippine publicly listed companies. The International Journal of Environmental Sustainability, 20(1), 43-71. https://doi.org/10.18848/2325-1077/CGP/v20i01/43-71
  • Marcuccio, M., & Steccolini, I. (2009). Patterns of voluntary extended performance reporting in Italian local authorities. International Journal of Public Sector Management, 22 (2), 146-167. https://doi.org/10.1108/09513550910934547
  • Mohd Shakil, N. S., Mohamad Azhar, N. A. Z., & Othman, N. (2023). Solid waste management in Malaysia: An overview. Information Management and Business Review, 15(1), 86-93. https://doi.org/10.22610/IMBR.V15I1(I)SI.3410
  • 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. https://doi.org/10.1016/j.jclepro.2016.01.085
  • Muhammad Jamil, C. Z., Mohamed, R., Muhammad, F., & Ali, A. (2015). Environmental management accounting practices in small and medium manufacturing firms. Procedia - Social and Behavioral Sciences, 172, 619 – 626. https://doi.org/10.1016/j.sbspro.2015.01.411
  • Qian, W., & Burritt, R. (2007). Environmental accounting for waste management: A study of local governments in Australia. Environmentalist, 27, 143-154. https://doi.org/10.1007/s10669-007-9015-x
  • Qian, W., Burritt, R., & Monroe, M. (2011). Environmental management accounting in local government: A case of waste management. Accounting, Auditing and Accountability Journal, 24 (1), 93-128. https://doi.org/10.1108/09513571111098072
  • Ribeiro, V.P.L. & Aibar-Guzman, C. (2010). Determinants of environmental accounting practices in local entities: Evidence from Portugal. Social Responsibility Journal, 6(2), 404-419. https://doi.org/10.1108/17471111011064771
  • Schaltegger, S. & Zvezdov, D. (2015). Gatekeepers of sustainability information: Exploring the roles of accountants. Journal of Accounting and Organizational Change, 11(3), 333-361. https://doi.org/10.1108/JAOC-10-2013-0083
  • Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.), John Wiley & Sons Ltd.
  • Velte, P., & Stawinoga, M. (2020). Do chief sustainability officers and CSR committees influence CSR?related outcomes? A structured literature review based on empirical?quantitative research findings. Journal of Management Control, 31, 333–377. https://doi.org/10.1007/s00187-020-00308-x
  • Welbeck, E. E., Owusu, G. M. Y., Bekoe, R. A., & Kusi, J. A. (2017). Determinants of environmental disclosures of listed firms in Ghana. International Journal of Corporate Social Responsibility, 2(1), 1–12. https://doi.org/10.1186/s40991-017-0023-y
  • Williams, B.R., Wilmshurst, T., & Cliff, R. (2011). Sustainability reporting by local government in Australia: current and prospects. Accounting Forum, 33(3), 176-186. https://doi.org/10.1016/j.accfor.2011.06.004
  • Zatini, G., Porta, A. D., & Za, S. (2025). Deciphering barriers and strategies in environmental management accounting (EMA) adoption: A comprehensive two-decade analysis. Corporate Social Responsibility and Environmental Management, 32(3), 1-16. https://doi.org/10.1002/csr.3130

Downloads

Full-text downloads recorded for this article, by month.

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Che Ku Kassim, C. K. H. (2025). Organizational Determinants of Environmental Management Accounting Adoption: Evidence from Malaysian Local Councils. Information Management and Business Review, 17(3(I)S), 315-325. https://doi.org/10.22610/imbr.v17i3(I)S.4754

Share this article

License

Copyright (c) 2025 Che Ku Hisam Che Ku Kassim (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 17 No. 3(I)S (2025) Digital Leadership, AI-Assisted Learning & Inclusive Workforce View issue contents

Published

2025-10-14

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission