Driving forces for green innovation from environmental management accounting and ESG management: a moderation and mediation model

Purpose Environmental, social and governance (ESG) activities play an important role in green manufacturing but there is still a lack of quantitative evidence on this content. This study aims to investigate the indirect impact of environmental management accounting (EMAA) on green innovation through ESG management. Besides, it aims to examine proactive sustainability strategy (PSUS) as a moderator of the relationship between ESG management and green innovation. Design/methodology/approach The study selected a sample of Vietnamese manufacturing firms and conducted an online survey of the views of 207 top managers (101 chief executive officers and 106 chief financial officers). After collecting data, the study used SmartPLS tool for analysis. Findings The results show that EMAA and ESG management are the driving forces of green innovation, and EMAA contributes significantly to ESG management. At the same time, EMAA indirectly supports green innovation through the mediating mechanism of ESG management, and the impact of ESG management on green innovation becomes stronger with a more comprehensive PSUS. Originality/value This study provides original contributions by offering quantitative evidence on the relationship between ESG management, EMAA and green innovation in the manufacturing sector. Unlike previous research, this study employs empirical analysis to demonstrate the mediating role of ESG management and the moderating effect of PSUS. The findings enhance the theoretical understanding of legitimacy theory and resource orchestration theory by illustrating how EMAA strengthens ESG management and fosters green innovation.