Unpacking the Role of Green Process Innovation as a Linking Mechanism Between Environmental Management Accounting and Environmental Performance in the Oil Sector

This study examines the impact of Environmental Management Accounting (EMA) on Corporate Environmental Performance (CEP). Furthermore, it explores the mediating role of Green Process Innovation (GPI) in this relationship. Data from 558 employees across registered Saudi Arabian oil and natural gas companies were collected and analyzed with Smart-PLS software. Results revealed a significant positive impact of EMA on CEP, with GPI partially mediating this relationship. These insights are valuable for corporate policymakers aiming to improve environmental performance through the strategic implementation of EMA and GPI. Additionally, the study emphasizes the importance of EMA and GPI for managerial strategies, showing how these tools can enhance environmental performance. Overall, this research expands the understanding of EMA’s impact on CEP and recommends integrating EMA and GPI into managerial and policy efforts to address stakeholder sustainability concerns and retain competitive advantage.