Linking environmental management accounting to environmental performance : the role of top management support and institutional pressures

Using two theoretical lenses-knowledge-based view (KBV) and the institutional theory-the current study aims to examine the relationship of environmental management accounting (EMA) to environmental performance (EP), in addition to explore the mediating effect of top management support (TMS) and the moderating effect of institutional pressures (IP). A cross-sectional study using a structured questionnaire was conducted on 299 Yemeni manufacturing SMEs. Partial least square structural equation modeling (PLS-SEM) technique via Smart PLS version 4 software was used for the analysis of quantitative data collected from the respondents. The results indicated that EMA positively and directly affects EP, and indirectly through TMS. Additionally, TMS partially mediates the EMA-EP link. More importantly, IP positively moderates the impact of EMA on EP. Furthermore, EP positively affects FP. The theoretical and practical implications of these results are also discussed. This study investigates the correlation between environmental management accounting (EMA) and environmental performance within the context of manufacturing SMEs in Yemen, considering the influence of top management support and institutional pressures. The significance of this study arises from the relatively nascent status of EMA as a branch of accounting, leading to a scarcity of related research. Moreover, existing studies on this subject have predominantly been conducted in developed nations, leaving a notable gap in empirical research for developing and less developed countries. Yemen's current industrial practices, influenced by the energy sector, manufacturing industries, and ongoing conflicts, have resulted in environmental pressures and adverse impacts. The environmental challenges, particularly those stemming from manufacturing activities, remain intricate. Therefore, this study aims to promote the integration of EMA practices in manufacturing SMEs in Yemen, with the goal of advancing environmental protection objectives. The findings from this research serve as valuable resources for policymakers, professionals, and enterprises, offering insights that can contribute to the development and implementation of mechanisms and policies fostering sustainability in Yemen's manufacturing SMEs.