Green Environmental Management System To Support Envi-Ronmental Performance: What Factors Influencing SMEs To Adopt Green Innovations?

Abstract

Current and dynamic developments in green technologies have led to several innovation practices in the manufacturing sector only to become the top approaches used for achieving and accelerating sustainable development (SD) in the current business markets. In addition, manufacturing firms is in need of green innovation to be able to monitor and control their operations and enhance their environmental performance. However, regardless of its many benefits, the level of green innovation adoption and implementation is still lower than expected among manufacturing industries. Thus, this study aimed to minimize the gap by developing and validating a study model underpinned by Resource based view and Institutional theories, along with the Technology-Organization-Environment (TOE) framework in combination to convince firms to adopt green innovation. The study gathered data from 179 respondents using a survey distributed to manufacturing firms, after which data was exposed to Structural Equation Modeling (PLS-SEM) approach, for analysis. Based on the approach deliverables, all the integrated constructs of the model, namely perceived benefits, top management support, coercive pressure, normative pressure and mimetic pressure all predicted green management accounting practices. Moreover, green management accounting practices were found to directly and significantly affect green environmental performance. The developed integrated model provides a clear implication to decision-makers, indicating the importance of adopting and using green practices and innovative technologies for enhancing environmental performance. Based on the results from the reviewed advanced green technologies studies, there is considerable connection between green management accounting practices and environmental performance in the context of developing economies.