EFFECT OF INSTITUTIONAL PRESSURES ON ENVIRONMENTAL PERFORMANCE: THE ROLE OF ENVIRONMENTAL MANAGEMENT ACCOUNTING AND ENVIRONMENTAL MANAGEMENT STRATEGY

Muhammad Sheraz Zahir; Arshad Zubair

Authors

*Muhammad Sheraz Zahir MS Scholar Faculty of Economic and Commerce, Superior University Lahore, Punjab, Pakistan (Corresponding Author).
Zubair Arshad Assistant Professor Faculty of Economic and Commerce, Superior University Lahore, Punjab, Pakistan.

Keywords:

Institutional Pressure; Environmental Performance; Environmental Management Strategy; Environmental Management Accounting; Pakistan.

Abstract

This study examines the influence of Institutional Pressure (IP) on Environmental Performance (EP) and investigates the mediating roles of Environmental Management Strategy (EMS) and Environmental Management Accounting (EMA), while assessing the moderating role of Top Management Support (TMS). A quantitative research approach was adopted, and data was collected from 313 respondent from manufacturing firms operating in Pakistan. PLS-SEM using Smart PLS software was used to analyze the gathered data. The findings indicate that IP significantly influences EMS, while EMS significantly affects EMA and EMA positively contributes to EP. The sequential mediating effect of EMS and EMA between IP and EP is also significant. However, IP does not have a significant direct effect on EP, and TMS does not significantly moderate the relationship between IP and EMS. The originality of the study lies in integrating IP, EMS, EMA and EP within a sequential mediation framework while examining TMS as a contextual factor. The findings contribute to Institutional Theory by demonstrating that institutional pressures influence environmental outcomes primarily through internal organizational mechanisms.

D.O.I. https://doi.org/10.5281/zenodo.23178354

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