Articles
DOI DOI: 10.62441/actainnovations.v63i.1115

ENVIRONMENTAL MANAGEMENT ACCOUNTING MODEL FOR SUSTAINABLE MANUFACTURING SMES: EVIDENCE FROM INDONESIA AND MALAYSIA

Rahmawati1, Ari Kuncara Widagdo 2, Sri Murni 2, Siti Rochmah Ika 3, Corina Joseph4, Siti Arifah 5, Junaid M. Shaikh6, Agus Dwianto 7
  1. 1 Department of Accounting, Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia.
  2. 2 Department of Accounting, Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia.
  3. 3 Department of Accounting, Faculty of Economics and Business, Universitas Janabadra, Yogyakarta 55231, Indonesia.
  4. 4 Accounting Research Institute, Universiti Teknologi MARA, 94300 Kota Samarahan, Sarawak, Malaysia.
  5. 5 Department of Accounting, Faculty of Economics and Business, Universitas Tidar, Magelang 56119, Indonesia.
  6. 6 Department of Accounting and Finance, University Technology Brunei, Gadong BE1410, Brunei Darussalam.
  7. 7 Department of Data Analytics and Computational Research, Inovasi Analisis Data, Banyumanik, Semarang 50261, Indonesia.

Abstract

This study explores how Environmental Strategy and Technology Strategy influence Business Sustainability through Environmental Management Accounting (EMA) in manufacturing SMEs in Indonesia and Malaysia. It also examines whether Green Mindfulness and Stakeholder Pressure enhance EMA's strategic function in sustainability-focused decision-making. Using a quantitative cross-sectional survey of 288 manufacturing SMEs, the research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze direct, mediating, moderating, and cross-country effects. The results show that environmental and technological strategies are key drivers of EMA adoption, with EMA serving as an essential mechanism for translating strategic goals into sustainability performance. Additionally, managerial environmental awareness and external stakeholder demand strengthen EMA effectiveness, though these effects are more conditional than those of direct drivers. Comparative findings suggest that Malaysian SMEs are better prepared internally, technologically, and financially, whereas Indonesian SMEs face stronger external sustainability pressures. This research advances understanding of environmental accounting and SME sustainability by framing EMA as a dynamic managerial capability that links strategy, technology, cognition, and institutional pressures in emerging Southeast Asian economies.

How to Cite

Rahmawati, Widagdo , A. K., Murni , S., Rochmah Ika , S., Joseph, C., Arifah , S., … Dwianto , A. (2026). ENVIRONMENTAL MANAGEMENT ACCOUNTING MODEL FOR SUSTAINABLE MANUFACTURING SMES: EVIDENCE FROM INDONESIA AND MALAYSIA. ACTA INNOVATIONS, 63, 483–500. https://doi.org/10.62441/actainnovations.v63i.1115
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