The influence of institutional isomorphism and organisational factors on environmental management accounting (EMA) practices of listed Nigerian and South African firms.
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Date
2019
Authors
Iredele, O.O.
Moloi, T.
Adelowotan, M.O
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor & Francis
Abstract
The rising profile of environmental issues, most of which relates to continuous
consumption of materials, energy and water by companies, and the continuous
accumulation of environmental-related costs, necessitates the need for environmental
management accounting (EMA). EMA is regarded as an extension of the conventional
management accounting, which is adopted for the purpose of tracking and treatment of
costs, earnings and savings incurred in relation to companies’ environmental-related
activities. This paper determines the level of EMA practices among selected Nigerian
and South African firms, and the influence of institutional and organisational factors on
the level of practice in each country. Utilising a quantitative research approach, the
study used a structured questionnaire to obtain data from 22 listed firms from each
country. The data were analysed using an independent sample t-test and a multiple
regression estimation technique. Results demonstrate that the level of EMA practices in
South African firms is higher than those in Nigerian firms. Institutional isomorphism,
through coercive pressure, was found to be the main determinant of EMA practice
among South African firms, while EMA practice among Nigerian firms is on account
of individual organisational factors. The evidence from the study supports both the
institutional and contingency theories as they apply to EMA practices. Therefore, the
results indicate that coercive pressure may be necessary to stimulate EMA practice in
Nigerian firms given that similar conditions exist in sampled firms in South Africa.
Efforts to strengthen normative and mimetic forces can also improve the level of EMA
practice in both countries
Description
EMA
Keywords
environmental management accounting , coercive pressure , mimetic pressure , normative pressure , Nigeria , South Africa
Citation
: Oluwamayowa O. Iredele , Moloi Tankiso & Michael O. Adelowotan (2020) The influence of institutional isomorphism and organisational factors on environmental management accounting practices of listed Nigerian and South African firms, South African Journal of Accounting Research, 34:3, 183-204, DOI: 10.1080/10291954.2019.1675254