A relationship analysis between green supply chain practices, environmental management accounting and performance

Abstract

Green supply chain practices and environmental management accounting are gaining popularity as a management approach for positive environmental improvement activities and performance. Many organisations, nevertheless, are not aware of their significance to environmentally sustainable development. This research aims to develop a structural framework to empirically test the relationship between green supply chain practices and environmental management accounting which may affect environmental and economic performance particularly, to understand the key sustainability drivers when making decisions concerning environmental protection and cost saving. A questionnaire survey was employed to collect data from the environmental management representatives who are the target respondents of ISO 14001 certified organisations in Malaysia. The findings revealed a significant relationship between green supply chain practices and environmental management accounting to environmental performance. The economic performance is actualised through the improvement in environmental performance. The economic gain in the form of cost-saving can be leveraged from the collective implementation of green supply chain practices and environmental management accounting through the focus on environmental performance. Operational managers, environmental management representatives and accountants are offered insights into how GSCPs and EMA contribute to the development of better provisions for environmental risk assessments, environmental costing determinations and environmental investment decisions.