Gold Open Access

Environmental innovation and financial performance: A case study of mediating role of environmental management

Evi Yuniarti(1Mail), Nurmala Nurmala(2), Endang Asliana(3), M Mursalin(4), Maheswar Satpathy(5), Adel A. Attiya(6), Nicolae Adrian Secelean(7),
(1) Politeknik Negeri Lampung, Bandar Lampung, Indonesia
(2) Politeknik Negeri Lampung, Bandar Lampung, Indonesia
(3) Politeknik Negeri Lampung, Bandar Lampung, Indonesia
(4) Universitas Malikussaleh, Aceh Utara, Indonesia
(5) University College London (UCL), London, United Kingdom
(6) University of Mansoura, Egypt
(7) Lucian Blaga University of Sibiu, Romania

Mail Corresponding Author


The purpose of this study is to investigate the impact of environmental innovation which is product innovation (PDI) and process innovation (PCI) on firm’s financial performance (FFP). And also, to investigate mediating role of the environment management accounting (EMA) against innovation and FFP. Data were collected from 98 respondents, worked in management positions in Indonesia’s manufacturing sectors. The study uses PLS-SEM (partial least square based structural equation modeling) software for the data analysis. The results showed that PDI has positive and significant impacts on FFP. But PCI has not significant impacts on FFP. Furthermore, PDI and PCI have significant impacts on EMA. This study also indicated that EMA mediate the relationship between innovation and FFP in the manufacturing sector of Indonesia. This study suggests the managers of the manufacturing companies or similar sectors to introduce innovations in their products and processes for developing a better EMA system.  The current study also tends to assist policymakers in developing appropriate policies for the manufacturing sector of Indonesia by realizing the importance of environmental innovation, EMA, so that their environmental and economic impacts can be managed and regulated.


product innovation; process innovation; financial performance; environmental management


Article DOI


Article Metrics

 Abstract views : 293 
 PDF views : 149 


Article Pages

Pages: 38-42


Full Text:



Chaudhry, I. N., Asad, H., Amir, M., & Rai, I. H. (2020). Environmental Innovation and Financial Performance: Mediating Role of Environmental Management Accounting and Firm’s Environmental Strategy. Pakistan Journal of Commerce and Social Sciences, 14(3), 815–837.

Fernando, S. ;, & Lawrence, S. (2014). A theoretical Framework for CSR Practices: Integrating Legitimacy Theory, Stakeholder Theory and Institutional Theory. Stewart The Journal of Theoretical Accounting, 10(1), 149–178.

Ferreira, A., Moulang, C., & Hendro, B. (2010). Environmental Management Accounting and Innovation: An Exploratory Analysis. Accounting, Auditing and Accountability Journal, 23(7), 920–948.

Fitriani, F., Sutarni, S., Yuniarti, E., Ismono, H., Lestari, D. A. H., & Haryono, D. (2021). Lampung Macroeconomy: A Model of Social Accounting Matrix. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 22(2), 263–273.

Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of Innovation Types on Firm Performance. International Journal of Production Economics, 133(2), 662–676.

Haron, N. H., Rahman, I., & Smith, M. (2017). Family Ownership, Firm Performance and Capital Structure: Malaysian Evidence. Advanced Science Letters, 23(11), 10688–10691.

Lasyoud, A. A., Haslam, J., & Roslender, R. (2018). Management Accounting Change in Developing Countries: Evidence from Libya. Asian Review of Accounting, 26(3), 278–313.

Lu, L. W., & Taylor, M. E. (2018). A study of the relationships among environmental performance, environmental disclosure, and financial performance. Asian Review of Accounting, 26(1), 107–130.

Nurmala, N., Damayanti, D., & Yuniarti, E. (2019). Effect of Non-Financial and Financial Factors on the Success of SMEs in Bandar Lampung City. Jurnal Ilmiah Esai, 13(1).

Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. British Accounting Review, 48(1), 102–116.

Reed, R., Storrud-Barnes, S., & Jessup, L. (2012). How Open Innovation Affects the Drivers of Competitive Advantage: Trading the Benefits of IP Creation and Ownership for Free Invention. Management Decision, 50(1), 58–73.

Seman, N. A., Govindan, K., Mardani, A., Zakuan, N., Saman, M. Z., Hooker, R. E., & Ozkul, S. (2019). The Mediating Effect Of Green Innovation on The Relationship Between Green Supply Chain Management and Environmental Performance. Journal of Cleaner Production, 229, 115–127.

Singh, S. K., Giudice, M. del, Chierici, R., & Graziano, D. (2020). Green Innovation and Environmental Performance: The Role of Green Transformational Leadership and Green Human Resource Management. Technological Forecasting and Social Change, 150(119762).

Wang, C. L., Ahmed, P. K., & Fulltext, E. (2004). The Development and Validation of the Organisational Innovativeness Construct Using Confirmatory Factor Analysis. European Journal of Innovation Management, 7(4), 303–313.

Yuniarti, E., Arditha, A., & Nurmala, N. (2018). The Effect of Quality Cost on The Rattan Industry Performance. International Journal of Social Sciences and Development, 2(1), 39–44.

Yuniarti, E., Fitriani, F., Puji Hartono, D., & Nurmala, N. (2022). Keunggulan Bersaing UMKM Industri Pangan di Bandar Lampung. Journal of Food System and Agribusiness, 93–101.

Yuniarti, E., Nurmala, N., & Irwandi, I. (2020). Analisis Biaya Kualitas dalam Meningkatkan Daya Saing Industri Rotan Menuju Program Making Indonesia 4,0. Jurnal Riset Akuntansi dan Manajemen, 9(1), 38–44.

Yuniarti, E., Saty, F. M., & Fitriani. (2016). Pengembangan Klaster Industri Kecil Rotan di Lampung Selatan. Prosiding Seminar Nasional Pengembangan Teknologi Pertanian, 411–417.


  • There are currently no refbacks.

Copyright (c) 2023 Evi Yuniarti*, Nurmala, Endang Asliana, Mursalin, Maheswar Satpathy, Adel A. Attiya, Nicolae Adrian Secelean

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.