Technology Industry Revolution 4.0 and Environmental Performance: The Mediating Role of Environmental Management Accounting

Abstract

Objective - The study aims to examine the relationship between advanced technology in IR 4.0 and the implementation of Environmental Management Accounting (EMA) and its impact on environmental performance. The research also proposes the mediating effect of EMA that there is an indirect effect of technology IR4.0 and environmental performance through EMA. Methodology/Technique – Online survey questionnaires were used to collect data distributed to the managers of the Malaysian electrical and electronic companies which are members of the Electrical and Electronics Association of Malaysia (TEEAM). Data analysis was performed using Partial Least Squares (PLS) analysis for the hypotheses testing. Findings - The findings confirmed that advanced technology significantly and positively influenced EMA and environmental performance. EMA significantly and positively influenced environmental performance. Evidence of EMA as a mediator was identified in the relation between advanced technology and environmental performance. Novelty - Environmental data with inadequate credibility prevents management from making informed decisions. Technology IR 4.0 is a key to solving EMA issues, enhancing real-time environmental data, and improving the production process, thus leading to efficient environmental management and improved environmental performance. The study was conducted due to insufficient empirical evidence on the employment of IR 4.0 advanced technology in the use of EMA that leads to enhanced environmental performance. Type of Paper: Empirical. JEL Classification: Q50, Q55 Keywords: Environmental Management Accounting; Advanced Technology Industrial Revolution 4.0; Environmental Performance, Contingency Theory, Electrical Electronic Industry. Reference to this paper should be referred to as follows: Rasit, Z.A; Bahari, N.A.M; Urus, S.T; Ismail, A.H. (2022). Technology Industry Revolution 4.0 and Environmental Performance: The Mediating Role of Environmental Management Accounting, Acc. Fin. Review, 7(1), 62 – 78. https://doi.org/10.35609/afr.2022.7.1(3)