Green environmental management system and environmental performance: Results from PLS-SEM and fsQCA

Advanced green technology developments have induced key innovation approaches in the manufacturing industry to boost sustainable development (SD) in the present market. Despite the industrial need for green innovation and its associated benefits to regulate and optimise their operations and environmental performance, respectively, green innovation implementation and adoption remain inadequate. Due to the key significance of green innovation for firms operating in emerging markets, this research endeavors to investigate the green innovation influence on the relationship between Environmental Management System adoption and impact on Environmental Performance. To bridge this gap, The current work aimed structuring and validating a study model via the integration of Resource-Based View (RBV) and Institutional theories with the Technology-Organisation-Environment (TOE) framework to persuade companies towards green innovation implementation. Survey questionnaires were disseminated to 183 employees in a manufacturing company to collect the study data, which were then assessed with partial least squares-structural equation modelling (PLS-SEM) and Fuzzy-set Qualitative Comparative Analysis (fsQCA). Resultantly, the model's integrated constructs of perceived benefits, top management support, coercive pressure, normative pressure, and mimetic pressure predicted green management accounting practices. Green management accounting practices directly and significantly impacted green environmental performance, while green innovation significantly and negatively moderated the ‘green management accounting practice-green environmental performance’ link. Thus, the integrated model provides decision-makers with clear implications of green practice and innovative technology adoption for optimal environmental performance. The outcomes derived from literature reviews on advanced green technologies implied a notable ‘green management accounting practice-environmental performance’ relationship within emerging countries.