MEDIATION ROLE OF ENVIRONMENTAL MANAGEMENT ACCOUNTING ON THE EFFECT OF GREEN COMPETITIVE ADVANTAGE ON SUSTAINABLE PERFORMANCE

Abstract

As hotels grow, the social and environmental problems they pose are becoming more and more complex. This study aims to develop a framework to identify the role of environmental management accounting and the effects of green competitive advantage on sustainability performance. This study uses an explanatory research approach by investigating the effect of green competitive advantages on sustainability performance mediated by environmental management accounting. This study analyses the responses of general managers of hotels in Indonesia as many as 287 respondents. Data was collected by self-administered surveys and the results were analysed using structural equation modeling to test conceptual models and hypotheses. It was observed that green competitive advantage is an essential factor for companies to improve the achievement of sustainable performance. Environmental management accounting directs the management to environmental aspects, communicates the relationship between employee actions and the organization’s sustainable goals and encourages the setting of sustainability performance priorities. Competitive advantage causes variations in the application of environmental management accounting to realise sustainable practices. The findings of this study indicate the importance of implementing environmental management accounting to realise competitive advantages in organisations; therefore, environmental management accounting mediates the relationship between green competitive advantages and sustainability performance.