Title: The moderating role of environmental management accounting between environmental innovation and firm financial performance

Authors: Sayedeh Parastoo Saeidi; Mohd Shahwahid Haji Othman; Parvaneh Saeidi; Sayyedeh Parisa Saeidi

Addresses: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, 43400, Serdang, Selangor, Malaysia ' Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, 43400, Serdang, Selangor, Malaysia ' Faculty of Management, Universiti Teknologi Malaysia, 81310, Skudai, Johor Bahru, Malaysia ' Faculty of Management, Universiti Teknologi Malaysia, 81310, Skudai, Johor Bahru, Malaysia

Abstract: The purpose of this paper is to investigate the relationships among innovation, environmental management accounting (EMA), and firm's financial performance. Specifically, this study explores the relationships of both product and process innovations with financial performance. Furthermore, this study examines the moderating role of EMA on the above relationships. Data were collected in a survey of top managers of the SMEs in manufacturing and consumer product industries in Iran, using a questionnaire. Hierarchical regression analysis was used to test all hypotheses. The findings revealed that both product and process innovations have positive relationships with firms' financial performance, while this effect is significant about product innovation and not significant about process innovation. Moreover, contrary to expectations, this study found a negative moderating effect of EMA on the relationship between process innovation and financial performance. However, no moderating effect of EMA was found on product innovation and financial performance relationship.

Keywords: product innovation; process innovation; environmental management accounting; EMA; firm performance; small medium enterprises; Iran.

DOI: 10.1504/IJBPM.2018.092759

International Journal of Business Performance Management, 2018 Vol.19 No.3, pp.326 - 348

Received: 20 Jun 2016
Accepted: 27 Dec 2016
Published online: 29 Jun 2018 *

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