Unveiling the green link: how environmental management accounting drives innovation and social performance

Purpose Environmental management accounting (EMA) has become a prominent focus in research dedicated to environmental protection and sustainable development. Drawing on the natural resource-based view and legitimacy theory, this study aims to investigate the direct impact of EMA on green innovation (GI) within the Vietnamese manufacturing sector. It also explores the moderating role of green absorptive capacity (GAC) in the relationship between EMA and GI. Additionally, the study assesses the influence of GI on social performance (SCP), therefore considering the indirect effect of EMA on SCP through GI. Design/methodology/approach The study presents significant findings based on data collected via a web-based survey of 189 managers from Vietnamese manufacturing firms. The primary data were analyzed using the partial least squares structural equation modeling approach. Findings The results indicate that GAC strengthens the positive relationship between EMA and GI. Furthermore, GI plays a significant role in enhancing SCP. The implementation of EMA also directly promotes GI. Finally, EMA indirectly influences SCP through the mediating effect of GI. Originality/value This study addresses a gap in the existing literature by examining the relationships among EMA, GI and SCP. Notably, it investigates the mediating role of GI in the EMA–SCP relationship and the moderating effect of GAC in the EMA–GI relationship. The findings contribute to a deeper understanding of both the natural resource-based view and legitimacy theory while also offering valuable practical implications for firms aiming to enhance environmental and social outcomes.