Các nhân tố ảnh hưởng đến thực hiện kế toán quản trị môi trường tại các doanh nghiệp sản xuất ở việt nam – nghiên cứu cho cáctomtat e

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
------------Prepared by

NGUYEN THI HANG NGA

FACTORS AFFECTING THE IMPLEMENTATION OF
ENVIRONMENTAL MANAGEMENT ACCOUNTING IN
MANUFACTURING COMPANIES IN VIETNAM –
A STUDY FOR THE SOUTHERN PROVINCES

Major: Accounting
Code: 9340301

SUMMARY OF DOCTORAL
DISSERTATION IN ECONOMICS

ACADEMIC INSTRUCTORS:
Ph.D. PHAM NGOC TOAN
Ph.D. TRAN ANH HOA

Ho Chi Minh City - 2018


The project was completed at:
University of Economics Ho Chi Minh City
Academic Instructors:
Ph.D. Pham Ngoc Toan
Ph.D. Tran Anh Hoa
Reviewer 1: ...........................................................................................................................
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Reviewer 2: ............................................................................................................................
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Reviewer 3: ...........................................................................................................................
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The dissertation will be presented to the Dissertation Board at the school level of
University of Economics Ho Chi Minh City
At …. (hours) (day) (month) (year)
The dissertation can be found at the library: The National Library and The Library of
University of Economics Ho Chi Minh City


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INTRODUCTION
1. Rationale for the research
Sustainable development is an essential development trend of modern society, it is a
“development which can satisfy the current need without affecting the ability to fulfil the need of
future generations” (Keeble, 1998, p.20). In developed countries, green economy has become a
business trend, while most developing countries temporarily prioritize economic development goals,
and the operation of manufacturing companies which may lead to negative effect on the environment
(O’Neill et al., 2005). However, under pressure of all stakeholders, firms have been doing business in
a more responsible manner. Therefore, in order to serve the business decision-making, in addition to
information about revenues, costs and profits, which were considered to be enough for decisionmaking in the past, these days managers also need information related to the environment.
Environmental management accounting which appeared in the 1970s, is able to provide information
to meet these requirements (Mohd et al., 2012). Performing environmental management accouting not
only helps organizations conform to the law on environmental protection but also brings many
benefits as well as ensuring the company’s business continuity and sustainable development (Delmas
and Toffel, 2008).
Nowadays, environmental pollution is a matter of global concern, thus corporate social
responsibility is often given central focus in discussions (Sadeghzadeh, 1995). In Vietnam, over the

past few years, environmental pollution has increasingly become complicated, especially
environmental issues which cause frustration among the public tend to increase. According to the
Ministry of Natural Resources and Environment (2016, p.28), every day, an average of 30,000 tons of
solid, liquid, gaseous wastes and other hazardous wastes are emitted from industrial zones, clusters
and industrial parks.
The southern key economic region is an important economic region which makes great
contribution to the economic growth of the country. In 2016, the economic growth rate of this region
was 1,5 times higher compared to the average growth rate of the whole country, its contribution to the
budget accounted for 60% (Bui Ngoc Hien, 2017). However, along with the process of economic
development, the southern key economic region has been subjected to enormous pressure on the
environment. According to published data, in many places the pollution index is 4 to 5 times higher
than the permitted pollutant standard (Mac Thi Minh Tra, 2014). Facing this situation, the
government, regulatory agencies, the mass media and the public will tighten their supervision on the
compliance of environmental protection laws by businesses, organizations and individuals.
As a means for companies to manage their business and the environment, environmental
management accounting has received increasing attention from authorities, firms and researchers. As
a relatively new branch of accounting, the number of research related to environmental management
accounting is still very modest (Bouma and Van der Veen, 2002). There has not been much research
on environmental management accounting implementation in developing countries (Herzig et al.,
2012). Especially in Vietnam, environmental management accounting is a new field in both research
and practical applications. Environmental management accounting is not yet popular in enterprises
and there are only very few number of in-depth studies on environmental management accounting
(Pham Thi Bich Chi et al., 2016).
Therefore, with the following reasons: (1) Sustainable development is the trend of modern
society; (2) the role and benefits of environmental management accounting; (3) The need for
environmental information of managers; (4) The actual situation of environmental pollution in
industrial zones, clusters and parks in the southern key economic region; and (5) Lack of research on
the factors affecting environmental management accounting implementation, the author has chosen
the topic “Factors affecting the implementation of environmental management accounting at
manufacturing companies in Vietnam – A study for the southern provinces”. This research will

investigate the relationship between factors and environmental management accounting
implementation at manufacturing companies in the southern provinces.


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2. Goal and objectives of research
2.1 Goal: Examining the effect of each factor on environmental management accounting
implementation in manufacturing companies in the southern provinces.
2.2 Objectives:
- Reseach objective 1: Determining factors which (directly and indirectly) affect environmental
management accounting implementation in manufacturing companies in the southern provinces.
- Reseach objective 2: Measuring the level of (direct and indirect) impact each factor has on
environmental management accounting implementation in manufacturing companies in the southern
provinces.
3. Questions of research: The questions corresponding to each specific objective are shown as
follow:
- Reseach question 1: What are the factors affecting environmental management accounting
implementation in manufacturing companies in the southern provinces?
- Reseach question 2: How does each factor influence environmental management accounting
implementation in manufacturing companies in the southern provinces at present?
4. Subjects and scopes of research
4.1 Subjects of research: Environmental management accounting implementation and factors
affecting the implementation of environmental management accounting.
4.2 Scopes of research:
The study is limited to the manufacturing companies in southern provinces. The examined period is
from December 2014 to June 2018.
5. Research Methodology
This research applies both qualitative and quantitative research methodology, which are conducted in
two phases.
1. Using qualitative research methods, with expert interviewing techniques. This qualitative

research phase aims to: (1) Identifying the factors (direct and indirect) affecting environmental
management accounting implementation in manufacturing companies in southern provinces, (2)
Improving the measurement scale of environmental management accounting implementation and the
scale of factors affecting environmental management accounting implementation.
2. Using quantitative research methods, through the collection of data using questionnaires
and the application of SPSS and AMOS softwares to support data-processing. This phase aims at
solving the objective: Measuring the level of impact each factor has on environmental management
accounting implementation at manufacturing companies in the southern provinces.
6. The scientific and practical significance of the thesis
* Scientific significance: First, this study adds more information to the theoretical background of the
factors affecting environmental management accounting implementation. Second, besides the direct
effects, this study also analyzes the mediating effects of factors on the implementation of
environmental management accounting. Third, this study investigates the relationship between factors
in two different contexts (organizational and institutional context), through the examination of the
effect of cognitive factors related to business environmental uncertainty on mimetic pressure when
accelerating the implementation of environmental management accounting.
* Practical significance: In Vietnam, environmental management accounting is a new area of
research and has not attracted much attention, hence this research is considered timely and
appropriate. The findings of the study will provide implications for manufacturing companies when
implementing environmental management accounting. This study also helps heighten managers’
awareness of doing business responsibly for the environment. The knowledge obtained from this
study could promote the implementation of environmental management accounting at manufacturing
companies in the southern provinces as to increase the economic benefits, protect the environment and
develop sustainably.
7. Structure of the thesis
In addition to the introduction and conclusions, the thesis consists of contents:
Chapter 1: Literature review
Chapter 2: Theoretical background
Chapter 3: Research methodology
Chapter 4: Research results and discussion

Chapter 5: Conclusions and some implications.


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CHAPTER 1: LITERATURE OVERVIEW
1.1.1 Studies instructing how to implement environmental management accounting
1.1.1.1 Previous studies in the world
The studies instructing the implementation of environmental management accounting have presented
concepts, classification of environmental information, methods of environmental costs and incomes
determination and guidelines on environmental management accounting. Some typical studies are:
USEPA (1995); Gray et al. (1996), Epstein (1996a), Sefcek et al. (1997); Elkington (1997); UNDSD
(2001); Burritt et al.; Lamberton (2005); IFAC (2005). These studies have indicated many concepts of
environmental management accounting and currently, there is no unified concept of environmental
management accounting. However, the concepts developed by UNDSD (2001) and those proposed by
IFAC (2005) are used extensively in research on environmental management accounting (Schalteger
et al., 2011).
Studies which are also considered to be part of the studies instructing environmental management
accounting implementation are those examining methods of environmental costs determination. These
include the following lines of research: (1) Material flow cost accounting (Schaltegger and Buritt,
2000; UNDSD, 2001; Federal Environment Ministry Germany, 2003; IFAC, 2005); (2) Life cycle
costing (Schaltegger and Buritt, 2000; Parker, 2000); (3) Activity-based costing (Stuart et al., 1999);
(4) Adequate cost accounting (Epstein,1996b; Bebbington et al., 2001); and (5) Full cost accounting
(USEPA, 1995). The studies which are classified into group (1), (2), (3) aim to serve cost analysis,
while the (4) and (5) types of studies aim to serve the purpose of evaluating investment projects.
1.1.1.2 Previous studies in Vietnam
Currently, in Vietnam, studies which instruct environmental management accounting implementation
are mainly based on UNDSD (2001) and IFAC (2005). These studies focus primarily on concepts,
classifications, methods of environmental costs and incomes determination and accounting treatment
for environmental costs, incomes, or lessons learned from other countries in order to form the
guidelines on environmental management accounting. Some prominent studies include: Nguyen Chi

Quang (2003); Tran Thi Hong Mai (2012); Pham Duc Hieu (2010); Vo Van Nhi and Nguyen Thi Duc
Loan (2013); Huynh Duc Long (2015); Hoang Thi Bich Ngoc (2014); Huynh Duc Long (2016).
1.1.2 Studies on environmental management accounting application
1.1.2.1 Previous studies in the world
Recently, many authors have devoted their attention to the applications of environmental management
accounting in different organizations. There are some typical studies, such as: Deegan et al. (1996);
Brown and Deegan (1998); Verschoor (1998); Bartolomeo et al. (2000); Frost and Wilmshurst (2000);
Frost and Seamer (2002); Burritt et al.; Masanet-Llodra (2006); Burritt and Saka (2006); Kokubu and
Nashioka (2008).
1.1.2.2 Previous studies in Vietnam
In Vietnam, there are only a small number of studies on the applications of environmental
management accounting in companies (Pham Thi Bich Chi et al., 2016). These studies mainly focus
on accounting treatment for environmental costs in companies operating in a specific field. Some
typical studies in this group are: Nguyen Thi Anh Tuyet and Nguyen Chi Quang (2006); Bui Thi Thu
Thuy (2010); Pham Hoai Nam (2016); Hoang Thi Bich Ngoc (2017).
1.2 STUDIES ON FACTORS AFFECTING ENVIRONMENTAL MANAGEMENT
ACCOUNTING IMPLEMENTATION
At present, there have been some in-depth studies on factors that influence the implementation of
environmental management accounting in companies. Some studies on factors affecting
environmental management accounting implementation are: Ferreira et al. (2010);Chang and Deegan
(2010); Qian et al. (2011); Jalaludin et al. (2011); Christ and Burritt (2013); Alkisher (2013); Jamil et
al. (2015); Mokhtar et al. (2016); Pham Thi Bich Chi et al. (2016); Nguyen Thi Nga (2016); Nguyen
Thi Hang Nga (2018a); Nguyen Thi Hang Nga (2018b); etc. These studies will provide evidence and
a more complete understanding to policy makers and advocates of implementing environmental
management accounting.
Previous studies have mainly employed contingency theory and institutional theory to explain the
implementation of environmental management accounting. Among the factors influencing


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environmental management accounting implementation which are taken from the previous studies,
there are six common factors supported by many authors: Coercive pressure, Normative pressure,
Mimetic pressure, Awareness of business environmental uncertainty, Environmental Strategy, and
Task complexity. As proposed by Al Kisher (2013), it is possible to classify these factors into two
groups, namely, the group of factors which belong to the contingency theory (organizational context)
and the group of factors which are associated with the institutional theory (institutional context).
1.2.1 Factors related to institutional context
Based on previous research using institutional theory to analyze the level of impact of external
pressure on organizations while implementing environmental management accounting, there are three
main elements of the institutional context chosen for analysis. These factors consist of coercive
pressure, normative pressure and mimetic pressure.
1.2.1.1 Coercive pressure
Coercive pressure is an impportant factor of the institutional theory, which is used to explain
innovation in an organization (DiMaggio and Powell, 1983; Delmas and Toffel, 2004b). Some
researchers has found the influence of coercive pressure on environmental management accounting
implementation, such as: Ambe (2007); Chang and Deegan (2010); Qian et al. (2011); Alkisher
(2013); Jamil et al. (2015); Nguyen Thi Nga (2016); Pham Thi Bich Chi et al. (2016); Nguyen Thi
Hang Nga (2018a).
1.2.1.2 Normative pressure
The normative pressure of professional association is a factor which relates to institutional context,
and it is a crucial factor in previous studies (DiMaggio and Powell, 1983; Chang and Deegan, 2010).
Ambe (2007); Qian et al. (2011); Jalaludin et al. (2011); Alkisher (2013); Pham Thi Bich Chi et al.
(2016); Nguyen Thi Hang Nga (2018a) realize that the degree of implementing environmental
management accounting is affected significantly by normative pressure.
1.2.1.3 Mimetic pressure
Mimetic pressure is one of the factors of institutional theory, some researchers such as Qian et al.
(2011); Jalaludin et al. (2011); Jamil et al. (2015); Pham Thi Bich Chi et al. (2016) examined the
influence of this factor on environmental management accounting implementation.
1.2.2 Factors related to organizational context
Ferreira et al. (2010); Chang and Deegan (2010); Qian et al. (2011); Alkisher (2013); Christ and

Burritt (2013); Mokhtar et al. (2016) studied a large number of factors of organizational context that
affect the technical and administrative improvements of companies.
Based on documents related to environmental management accounting implementation, three main
variables referred to institutional context were selected for the analysis of environmental management
accounting implementation in manufacturing companies in the southern provinces, namely:
environmental strategy, awareness of business environmental uncertainty and task complexity. These
variables are chosen due to their importance in previous studies or their significant impact on
environmental management accounting implementation.
1.2.2.1 Awareness of business environmental uncertainty
Business environment is a factor referred to organizational context in studies applying contingency
theory (Chenhall, 2003). If an organization experiences considerable changes in business
environment, it may need to reform the accounting system so as to provide more information for
decision-making in order to minimize the impact of the business environment and manage related
costs (Gul and Chia, 1994). Awareness of the business environmental uncertainty is found to be a
great explanatory variable for implementing environmental management accounting in a number of
studies like Chenhall (2003); Qian et al. (2011); Nguyen Thi Hang Nga (2018b).
1.2.2.2 Environmental strategy
With respect to environmental management accounting, Parker (1997) reveals that the implementation
of environmental management accounting may depend on the organization’s environmental strategy.
This result is also confirmed in the study of Ferreira et al. (2010); Qian et al. (2011); Cadez and
Guilding (2012); Christ and Burritt (2013); Alkisher (2013). Recently, Pham Thi Bich Chi et al.
(2016); Nguyen Thi Hang Nga (2018b) has found evidence of the effect of environmental strategy on
environmental cost management accounting implementation in manufacturing companies in Vietnam.


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1.2.2.3 Task complexity
The work of an organization (often referred to as organizational task) relates to the type of work done
by an organization (Daft and Macintosh, 1978). The task comprises the complexity of the task
execution process, the amount of time needed to think about solutions to problems related to the work,

and the knowledge required to perform tasks (Perrow, 1967). As regards environmental management
accounting, the findings of Woodward (1965); Chang and Deegan (2010); Qian et al. (2011) indicate
that environmental management accounting implementation has a strong relationship with task
complexity.
1.3 SOME COMMENTS ON PREVIOUS STUDIES
1.3.1 Respondents of previous studies
Studies related to the application and implementation of environmental management accounting have
given the views of managers more attention than others’ views. Focusing solely on the managers’
views is not appropriate enough to explain the factors that may influence the application and
implementation of environmental management accounting, thus there need to be additional research
based on the views of other respondents.
1.3.2 Results of previous studies
1.3.2.1 Coercive pressure
There are some differences between previous studies on coercive pressures in motivating companies
to adopt and implement environmental management accounting. Ambe (2007); Chang and Deegan
(2010); Alkisher (2013); Jamil et al. (2015); Nguyen Thi Nga (2016); Pham Thi Bich Chi et al.
(2016); Nguyen Thi Hang Nga (2018a), found that coercive pressure is one of the most important
factors affecting the implementation of environmental management accounting. However, the study of
Jalaludin et al. (2011) suggests that coercive pressure does not have a strong influence on the
application of environmental environmental management accounting.
1.3.2.2 Normative pressure
Contrary to expectations, the study of Chang and Deegan (2010); Jamil et al. (2015) presents that the
pressure of professional and formal education associations (normative pressure) does not have a
signifcant impact on the application of environmental management accounting. Meanwhile, Ambe
(2007); Qian et al. (2011); Jalaludin et al. (2011); Alkisher (2013); Pham Thi Bich Chi et al. (2016);
Nguyen Thi Hang Nga (2018a) found that normative pressure is the most important factors affecting
environmental management accounting implementation. Therefore, the conclusions of the effect of
normative pressure still vary between previous studies.
1.3.2.3 Mimetic pressure
Studies conducted by Qian et al. (2011); Alkisher (2013); Nguyen Thi Hang Nga (2018a) indicate a

positive effect of mimetic pressure on environmental management accounting implementation in
Vietnamese manufacturing companies. Nevertheless, the results of Chang and Deegan (2010);
Jalaludin et al. (2011); Jamil et al. (2015); Pham Thi Bich Chi et al. (2016) report that mimetic
pressure does not have a considerable influence on the application of environmental management
accounting.
1.3.2.4 Awareness of business environmental uncertainty
While awareness of business environmental uncertainty is found to be a major explanatory factor for
the implementation of environmental management accounting (Chenhall, 2003; Qian et al., 2011;
Nguyen Thi Hang Nga, 2018b), Osborn (2005) argues that the effect of awareness of business
environmental uncertainty on environmental management accounting implementation is not as
significant as the impact of other random variables. Similarly, Chang and Deegan (2010); Pham Thi
Bich Chi et al. (2016) also found no evidence of the effect of awareness of business environmental
uncertainty on the implementation of environmental management accounting.
1.3.2.5 Environmental strategy
The findings of Chang (2007) suggest that the environmental strategy does not significantly affect the
application of environmental management accounting. This conclusion is not consistent with the
findings and expectations of Kokubu and Nashioka (2006); Qian et al. (2011); Christ and Burritt,
2013; Alkisher, 2013; Pham Thi Bich Chi et al. (2016); Nguyen Thi Hang Nga (2018b), who say that
corporate strategies are one of the most crucial factors influencing the implementation of innovation
in organizations.


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1.3.2.6 Task complexity
Qian (2007) has interpreted task complexity as the complexity of the work involved in the production
process. Hence, Qian discusses that the more complex the task (in relation to the production process)
is, the more necessary it is for the company (or organization) to implement environmental
management accounting in order to obtain useful information. According to Keit (2011), Dikgwatlhe
(2013), and Kotzee (2014), task complexity is perceived as the complexity associated with the
implementation of environmental management accounting. Therefore, as the task complexity

increases, it will hinder the implementation of environmental management accounting.
1.3.3 The number of previous studies
Despite a wide range of studies on the application of environmental management accounting in
different countries around the globe, only a few number of studies focus on environmental
management accounting in developing countries. In Vietnam, recently this subject has attracted
attention from several authors, for instance, Hoang Thi Bich Ngoc (2016); Pham Thi Bich Chi et al.
(2016); Nguyen Thi Nga (2016). Nonetheless, these authors only consider one aspect of
environmental management accounting, which is environmental cost management accounting.
Besides, the scopes of their studies are limited in a specific business sector.
1.4 Gaps of the research and Orientation to the research
1.4.1 Gaps of the research
In Vietnam, environmental management accounting is not yet popular in companies and only a few
number of studies into environmental management accounting were carried out (Pham Thi Bich Chi
et al., 2016). The results of some studies in foreign countries have revealed factors that affect the
implementation of environmental management accounting in organizations. However, most of these
studies did not comprehensively examine all factors and they also ignored the indirect effect which
factors may have on environmental management accounting implementation.
Furthermore, there are differences between the findings in previous studies. The results of some
studies do not meet the theoretical expectations, or contradictory to the arguments and findings
reported in the research on factors affecting the implementation of environmental management
accounting.
1.4.2 Orientation to the research
Firstly, this research inherits information from previous study on factors affecting the implementation
of environmental management accounting, while examining the indirect effect of factors on
environmental management accounting implementation.
Secondly, this study is one of the few studies which analyze how factors from two different contexts
(organizational context with factors developed from contingency theory and institutional context with
factors developed from institutional theory) affect the implementation of environmental management
accounting by investigating the impact of awareness of business environmental uncertainty on
mimetic pressure during the implementation of environmental management accounting.

1.5 SUMMARY OF CHAPTER 1
The chapter 1 provided an overview of previous studies in the world which examine factors affecting
the implementation of environmental management accounting. By reviewing these previous studies,
the author has found the gaps of the study and hence, determining the research orientation to the
thesis.
CHAPTER 2: THEORETICAL BACKGROUND
2.1 AN OVERVIEW OF ENVIRONMENTAL MANAGEMENT ACCOUNTING
2.1.1 History of formation and development
2.1.2 Definitions and classification of Environmental accounting
2.1.3 Definitions of Environmental management accounting
The definitions of environmental management accounting are widely diverse (for example: Bennett
and James, 1998; Bartolomeo et al., 2000; UNDSD, 2001; Jasch, 2003; Bouma and Correlje, 2003;
IFAC, 2005; Staniskis and Stasiskiene, 2006). Although there are some differences in definitions of


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mannagement accounting in terms of scope of application, most definitions explain that
environmental management accounting is an additional information system for management
accounting. It is not a separate system, but it helps to improve the management accounting system.
The definition provided by Bennett and James (1998) is chosen for the objectives of this research.
Accordingly, “Environmental management accounting is an information system which provides
monetary and non-monetary information to improve and evaluate economic and environmental
efficiency of a company”. This definition highlights the importance of information generated by
environmental management accounting in order to enhance the financial and environmental efficiency
of an organization.
2.1.4 Subject of Environmental management accounting
According to IFAC (2005), subjects of environmental management accounting include:
- Accounting for environmental cost
- Accounting for environmental revenues and incomes
- Accounting for resource efficiency assessment

2.1.5 Types of Environmental management accounting information
The implementation and application of environmental management accounting in an organization
must include accounting measured in terms of money (financial information or monetary information)
and accounting measured in terms of other units (non-monetary information) about using materials,
labor hours as well as other cost control.
2.1.6 Content of Environmental management accounting
The contents of environmental management accounting in companies are approached from different
angles.
- As regards the work cycle, environmental management accounting comprises the following
contents:
+ Organizing the collection of initial information (determining environmental costs and incomes)
+ Organizing the systematization and processing of environmental information (synthesizing and
distributing information about environmental costs and incomes, Life Cycle Cost, Material Flow Cost
Accounting, Input Output Analysis)
+ Organizing the analysis of environmental performance
+ Organizing the supply of environmental information (environmental management accounting
report)
To conclude, environmental management accounting implementation consists of organizing the
collection of information, processing, analyzing and providing environmental information.
2.2 RELATED FOUNDATION THEORY
2.2.1 Institutional theory
2.2.1.1 The concept of institutional theory
Institutional theory mentions changes in organizational behavior (changes in models, strategies,
processes, methods, techniques, etc.) due to pressure from stakeholders and the ways that
organizations may do to survive and develop legally (Ninh Thi Kim Thoa, 2015).
2.2.1.2 Basic elements of institutional theory
Scott (1995) classified the three elements of institutional theory into: Coercive pressure, normative
pressure and mimetic pressure.
- Coercive pressure is the state that organizations are subjected to the official or unofficial pressure
exerted by external authorities (government, regulators, customers, suppliers), which causes them to

change the system and procedures so as to comply with the regulations.
- Normative pressure, which requires organizations to adhere to professional standards, rules,
principles and professional ethics, this pressure is applied to organizations by education and
professional associations.
- Mimetic pressure presents the pressure which organizations need to seek for patterns of successful
organizations to learn their activities, models, processes, methods and techniques.
2.2.1.3 The effect of institutional elements on environmental management accounting
implementation
The effect of institutional elements on implementing environmental management accounting is
explained in figure 2.2 below.


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Coercive pressure
Environmental
management
accounting
implementation

Normative pressure

Mimetic pressure
Source: Summary of author
Figure 2.2: The effect of institutional elements on environmental management accounting
implementation
2.2.1.4 The application of institutional theory to the research
In addition to the three main pillars of institutional theory that affect the implementation of
environmental management accounting as explained in Figure 2.2, Delmas and Toffel (2004b)
suggest that there may be interaction between institutional elements. For example, under coercive

pressure from the authorities, organizations and professional associations may have to develop more
stringent standards, and professional bodies as well as professional associations have encouraged
companies operating in the same business network to imitate the behavior of other organizations. For
the above arguments, the institutional theory employed in this study is presented in figure 2.3 below.
Coercive pressure
Environmental
management
accounting
implementation

Normative pressure

Mimetic pressure
Source: Summary of author
Figure 2.3: The application of institutional theory to the research
2.2.2 Contingency theory
2.2.2.1 The concept of contingency theory
Contingency theory suggests that there is no general accounting system suitable for all organizations
in all circumstances, organizations must continually assess and improve their management accounting
systems in order to withstand the challenges of a constantly changing environment and an everchanging organization (Hutaibat, 2005).
2.2.2.2 Basic elements of contingency theory
In previous studies, a large number of random factors were found to have impact on designing the
accounting system. In particular, random factors having effect on the design of management
accounting system which were examined in most studies are: environment, strategy and
organizational tasks (Chenhall, 2003).
- Awareness of business environmental uncertainty is considered to be awareness of the inability to
control or accurately forecast the future status of the business environment.
- Environmental strategy is a comprehensive plan related to the environmental performance of a
company, with the purpose of deploying resources to establish a favorable environment for the
company, including: complying with environmental regulations, producing environmental protection

solutions, aiming at providing environmentally friendly products and achieving environmental
certification.


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- Task complexity is perceived as the level of difficulty in the process of implementing
environmental management accounting (in terms of cost, time, effort, the complexity to solve
problems related to the task), and the requirements of knowledge needed to perform the task.
2.2.2.3 The effect of contingency elements on environmental management accounting
implementation
Figure 2.5 below illustrates how the elements of contingency theory affect the implementation of
environmental management accounting
Awareness of business
environmental uncertainty

Environmental strategy

Environmental
management
accounting
implementation

Task complexity
Source: Summary of author
Figure 2.5: The effect of contingency elements on environmental management accounting
implementation
2.2.2.4 The application of contingency theory to the research
Apart from the three main elements of contingency theory that affect the implementation of
environmental management accounting as presented in figure 2.5, as per the theoretical framework of
Gordon and Miller (1976) about the impact of random variables on organizational behavior, random

factors not only have direct effect but also produce indirect effect on the accounting information
system of an organization through the influence of business environment on attributes of the
organization. By developing the research framework of Gordon and Miller (1976), Gupta and
Govindarajan (1984) argues that an organization can choose different strategies to tackle business
environmental uncertainty. This implies that awareness of business environmental uncertainty will
affect a company’s environmental strategy which, in turn, will affect the implementation of
environmental management accounting. Hence, the contingency theory applied to this study is
presented in figure 2.6 below.
Awareness of business
environmental uncertainty

Environmental strategy

Environmental
management
accounting
implementation

Task complexity
Source: Summary of author
Figure 2.6: The application of contingency theory to the research


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2.3 FACTORS AFFECTING ENVIRONMENTAL MANAGEMENT
IMPLEMENTATION FROM THE THEORETICAL BACKGROUND

ACCOUNTING

2.3.1 Implementing environmental management accounting

2.3.2 Factors affecting the implementation of environmental management accounting
2.4 DEVELOPING THE RESEARCH HYPOTHESES
Based on the literature review and results of related studies, the author has formulated the following
14 hypotheses:
Table 2.5 Research hypotheses
Hypotheses

Hypotheses and Expected Sign

Expected
sign

H1

Coercive pressure has direct effect on environmental management
accounting implementation.

+

H2

Normative pressure has direct effect on environmental management
accounting implementation.

+

H3

Mimetic pressure has direct effect on environmental management
accounting implementation.

+

H4

Awareness of business environmental uncertainty has direct effect on
environmental management accounting implementation.

+

H5

Environmental strategy has direct effect on environmental management
accounting implementation.

+

H6

Task complexity has direct effect on environmental management
accounting implementation.

-

H7

Coercive pressure has direct effect on Normative pressure.

+

H7A

Coercive pressure has indirect effect on environmental management
accounting implementation, through the mediating role of Normative
pressure.

+

H8

Normative pressure has direct effect on Mimetic pressure.

+

H8A

Normative pressure has indirect effect on environmental management
accounting implementation, through the mediating role of Mimetic
pressure.

+

H9

Awareness of business environmental uncertainty has direct effect on
Mimetic pressure.

+

H9A

Awareness of business environmental uncertainty has indirect effect on
environmental management accounting implementation, through the
mediating role of Mimetic pressure.

+

H10

Awareness of business environmental uncertainty has direct effect on
Environmental strategy.

+

H10A

Awareness of business environmental uncertainty has indirect effect on
environmental management accounting implementation, through the
mediating role of Environmental strategy.

+

Source: Proposed by the author


11
2.5 RESEARCH MODEL
Besides the relationship illustrated in figure 2.3 and 2.6, according to the new institutional theory
proposed by DiMaggio and Powell (1983), simulation is a process of mimicking standard patterns to
confront business environmental uncertainty. This implies that awareness of business environmental

uncertainty has impact on mimetic pressure. Therefore, the research model is proposed as follows:
H9

Awareness of business
environmental uncertainty

Mimetic pressure
H3

H4
H10

H8
H5

Environmental strategy

Environmental
management
accounting
implementation

H2
Normative pressure

H1

H6
Task complexity

H7
Coercive pressure

Source: Proposed by the author
Figure 2.7: Research model
2.6 SUMMARY OF CONCLUSION FOR CHAPTER 2
Chapter 2 has systematized the general theoretical literature and provided a basic foundation for
environmental management accounting and the factors that can affect the process of implementing it.
This chapter then discusses the application of foundation theories, including: contingency theory and
institutional theory to explain the implementation of environmental management accounting.
Furthermore, chapter 2 also highlights issues that have been considered and tackled by research
associated with environmental management accounting implementation. These issues were analyzed
and argued for developing the theoretical framework for this study. Chapter 3 will provides details on
the research methodology of the thesis.
CHAPTER 3: RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.1.1 Determining the research methodology
This research was conducted by combining two methods: in the first phase of the research process,
qualitative research was carried out and quantitative research was conducted in the second phase.
3.1.2 Justifying the design of sequential mixed research
This study chooses sequential mixed methods. As per Tashakkori and Teddlie (1998), designing a
sequential mixed method with qualitative research followed by quantitative research is a popular
sequence, because in most studies, quantitative tools are used after collecting a suitable sample from
qualitative interviews and the collected qualitative data is analyzed.
3.2 RESEARCH PROCESS
According to Nguyen Dinh Tho (2013, p.34), the research process combining qualitative and
quantitative methods can be carried out as follows:
- (1) Using qualitative study to adjust the scale
- (2) Using quantitative pilot study for preliminary evaluation of the scale. Since the scales used in the
research are inherited from developed countries and applied to developing countries, the quantitative

pilot study is very important (Hair, 2010).
- (3) Using the official quantitative study (main study) to test the scale and theoretical model.
In this study the author has conducted the research process which consists of these following steps:
- Define the research problem
- Review the previous studies and studying the foundation theories


12
- Propose the research model
- Discuss with experts (n = 8)
- Carry out quantitative pilot study (n = 128)
- Establish the official research model
- Conduct quantitative research, n = 323 (Descriptive statistics analysis, Cronbach’s Alpha reliability
test, exploratory factor analysis, confirmatory factor analysis, regressing and testing with structural
equation modeling, analyzing the differences using ANOVA test)
- Write a report
3.3 QUALITATIVE STUDY
The qualitative study focused on two main purposes : (1) identifying factors that have direct and
indirect effect on environmental management accounting implementation at manufacturing companies
in the southern provinces, (2) improving the scale which measures the implementation of
environmental management accounting and the scale of factors affecting environmental management
accounting implementation. The method used in the qualitative study for this research is interviewing
experts.
According to Hair et al. (2010), qualitative research is critically important when the scales used in
developed countries are inherited and applied to developing countries.
3.4 QUANTITATIVE STUDY
3.4.1 Quantitative pilot study
Quantitative pilot study is an important stage in identifying errors or flaws while designing
questionnaires for the official research process. Furthermore, the quantitative pilot study will help to
revise the question items as to ensure the reliability and values of the scale. Hair et al (2010) argue

that qualitative and quantitative pilot research are very important as question items and scales were
taken from different sources and these scales are applied in specific contexts.
3.4.2 Main study
The purpose of the quantitative research phase is to analyze the implementation of environmental
management accounting and to investigate the level of impact each factor has on environmental
management accounting implementation in manufacturing companies in the southern provinces.
3.5 SUMMARY OF CHAPTER 3
Chapter 3 has presented the research methodology used in this study. By analyzing the advantages
and disadvantages of each method, the author argues that the sequential mixed method (carrying out
qualitative study before doing quantitative study) is best suited for achieving goals and answering
research questions.
Moreover, each step of conducting qualitative study and quantitative study is also presented clearly in
Chapter 3.
CHAPTER 4: RESEARCH RESULTS AND DISCUSSION
4.1 QUALITATIVE RESULTS
The qualitative research stage helps the author to identify the factors that affect the implementation of
environmental management accounting as well as improve the environmental management accounting
implementation scale and scale indicating factors that affect the implementation of environmental
management accounting. Specific results are as follows:
4.1.1 Scale of Environmental management accounting Implementation
The scale of performing environmental management accounting is abbreviated to KTQTMT, which is
developed by Ferreira et al. (2010); Christ and Burritt (2013); Jalaludin et al. (2016). Many experts
have commented and adjusted, resulting in the measurement for implementation of environmental
management accounting implementation consists of 9 observed variables.
4.1.2 Coercive Pressure Scale
Coercive pressure scale was developed and used by Jalaludin et al. (2011); Jamil et al. (2015).
Through discussions, experts contributed to the removal of some inquiries, due to their inadequacy in
the context of Vietnam, eliminating some inquiries as they tend to overlap with other items and
supplement one inquiry which is related to the pressure from the local government. The result shows
that the coercive pressure scale, abbreviated to ALCE, consists of eight observed variables.

13
4.1.3 Normative Pressure Scale
The normative pressure scale, which is ALQC in short and created by Jalaludin et al. (2011); Jamil et
al. (2015) consists of two observational variables. Through discussions, the experts added one
observed variable “When participating in activities related to the environment, the enterprises’
performances are influenced by information transmitted by these activities.” Consequently, the ALQC
scale consists of 3 observed variables.
4.1.4 Mimetic Pressure Scale
The mimetic pressure scale, abbreviated to ALMP, set by Jalaludin et al. (2011); Jamil et al. (2015)
consists of four observed variables. However, through discussions, experts commented that
“businesses often mimic environmental activities that other businesses have done” should be removed
because it is difficult for experts to identify which enterprises are “other businesses”. As a result, the
ALMP scale is adjusted to 3 observed variables.
4.1.5 Scale of Awareness Of Business Environmental Uncertainty
Scale of awareness of business environmental uncertainty was proposed by Chang (2007),
which included 7 observed variables. In the opinion of the experts, the authors have eliminated two
observed variables. The first one is about “behavior of parties related to environment”, because
according to experts it is often difficult to perceive behavior of the objects. The second is the about
“the impact of environmental issues on the performance of enterprises”, because experts say that in
the context of Vietnam, most businesses are not fully aware of the impact of the environmental issues
to their activities. As a result, the scale for the business environmental uncertainty (abbreviated to
MTKD) is represented by five observed variables.
4.1.6 Environmental Strategy Scale
The environmental strategy scale, which is CLMT in short, was proposed by Chang (2007); Qian
(2007). The Qian’s original scale (2007) consists of four observed variables, after which experts
suggest adding a variable of “the company aims to provide eco-friendly products” that results in the
CLMT scale consists of 5 observed variables.
4.1.7 Scale of The Task Complexity

The scale used to measure the complexity of the task is abbreviated to NVTC and was proposed by
Keit (2011). According to the experts’ comments, this scale was re-adjusted in terms of penmanship,
and included four observed variables.
4.2 RESULTS OF QUALITATIVE PILOT STUDY
4.2.1 Results of The Analysis of The Scale Reliability
The study consists of seven scales, and the Cronbach’s Alpha reliability test results indicate that most
scales meet the requirements. The Cronbach’s alpha coefficient is greater than 0.6 and the corrected
item-total correlation is greater than 0.3. Only the Coercive pressure (ALCE) scale has two variables,
ALCE 7 and ALCE 8, which have corrected item-total correlation less than 0.3, should be discarded.
4.2.2 Results of Exploratory Factor Analysis
When the scales assure reliability, the next step is taken to analyze the exploratory factor. Performing
analysis for factors related to institutional theory and contingency theory, the results show that the six
factors with the coefficient KMO = 0,697> 0.5 and the value of Sig. = 0,000 so the factor analysis
method is appropriate. The value of Eigenvalues = 1.518 and the total variance explained = 63,55% so
the conclusion is accepted in EFA analysis. Performing factor analysis for the KTQTMT Scale shows
that one factor with coefficient KMO = 0,897> 0.5 and Sig. = 0,000 is extracted, thus the factor
analysis method is appropriate. Eigenvalues = 4,66 and total variance explained = 51,82% so the
conclusion is satisfactory when performing exploratory factor analysis.
4.3 OFFICIAL RESEARCH MODEL
Through qualitative research and preliminary quantitative research, models and research hypotheses
remain the same as originally proposed.
4.4 RESULTS OF OFFICIAL QUANTITATIVE RESEARCH
4.4.1 Describe the research sample
4.4.2 Descriptive statistics analysis


14
Descriptive statistics results show that in general, the level of environmental management accounting
implementation of enterprises in the sample is moderate. The average of the Environmental
management accounting implementation is 2,95 on the 5-point likert scale. In particular, the highest

mean value of the observed variable is 3,59 which belongs to KTQTMT1 variable (Determining the
cost related to the environment) and the lowest mean value is 2,19 belonging to the KTQTMT8
variable (the enterprises analyze the efficiency of environmental performance).
Enterprises assess the awareness of the business uncertainty at a relative level. The average of the
business environment scale (MTKD) is 3,3.
Environmental strategies of enterprises are evaluated to be over average and relatively equal. The
mean value of the CLMT scale is 3,371 whereas the mean value of the variables is above 3,2.
The task complexity scale was rated to be the highest with an average of 3,58. Meanwhile, observed
variables have an average value of 3,68 and above, with the exception of observed variable NVTC4
(It’s very difficult to quantify environmental impacts) which is rated to be the lowest with a mean
value of 3,22.
The mean value of the ALCE scale is 3.38, which is higher than any other pressure scales (the average
of ALQC scale is 2,94 and ALMP scale is 3,13).
The ALQC scale has three observation variables, the mean value of the highest variable is 3.03 and
the observed variable which has the lowest mean value is of 2,79.
ALMP scales with 3 observed variables are all above average. Meanwhile,the observed variable
“companies often imitate the environmental activities that large enterprises in the same industry have
done” has the highest average value of 3,18 and the observed variable “companies often imitate the
environmental activities that multinational companies have done” has the lowest average value of
3,05.
4.4.3 Scale Reliability Test and Exploratory Factor Analysis (EFA)
4.4.3.1. Scale Reliability Test
The study includes 7 scales with a total of 34 observed variables. Those are reflective scales and are
derived from previous studies so the Cronbach’s Alpha coefficient is used to test the scale reliability.
The test results show that the scales meet the requirement of reliability, except that the observed
variable CLMT5 of the CLMT scale has a corrected item-total coefficient of 0,286, less than 0,3, so
the CLMT5 observed variable will be rejected off the scale. The final result consisted of 33 observed
variables for the 7 scales taken into the confirmatory factor analysis.
4.4.3.2. Exploratory Factor Analysis (EFA)
Scales continue to be used to perform exploratory factor analysis before conducting confirmatory

factor analysis. Results of exploratory factor analysis revealed that KMO = 0,916 with Sig value. =
0,000, the factor loadings are greater than 0,5 and the difference among factor loadings of variables
are all less than 0,3; Eigenvalues value stops at the seventh factor, which was 1,141, greater than 1
and the total variance explained is 67,780%, higher than 50%. Consequently, the exploratory factor
analysis is appropriate.
4.4.4 Confirmatory Factor Analysis (CFA)
Following the exploratory factor analysis, the 7 concepts with 34 observed variables will continue to
be included in the confirmatory factor analysis. The standards used in this study when performing
CFA are CMIN / df ≤ 3, TLI, CFI ≥ 0,9 and RMSEA ≤ 0,08 (Nguyen Dinh Tho, 2008) to estimate if
the research model is
in line with market data.
The result from the CFA analysis of the critical model indicates that the coefficients meet the
requirement. Specifically, CMIN / df = 1,996 is less than 3; TLI = 0,911, CFI = 0,920, which are both
greater than 0,9 and RMSEA = 0,056, which is less than 0,08. The minimum standardized regression
coefficient is 0,529 and the maximum is 0,883 which are therefore greater than 0,5 and are
statistically significant at 1% due to the Sig value = 0,000. Thus, it can be concluded that the observed
variables used to measure the concepts in the model are convergent and unidimensional. The result of
differential validation in the critical model indicates that the concepts in the research model achieved
a distinctive value because the correlation coefficient and standard deviation were all less than 1 and
significant at the significant level of 5%.


15

Source: Amos data processing results.
Figure 4.3 The results of CFA analysis with the critical measurement model
4.4.5 Structural Equation Modeling Analyis (SEM)
4.4.5.1 Theoretical model testing
After the CFA analysis meets the demand, the research conducted the test of theoretical model using
the SEM model. The result of SEM model test shows that the model has df = 517 degrees of freedom,

Chi-Square = 1075,100; TLI = 0,903; CFI = 0,911 which means these are all greater than 0,9;
RMSEA = 0,058 less than 0,08 and CMIN/df = 2,079 which is less than 3; P = 0,000. This result
shows that the theoretical model is consistent with the research data. Estimation coefficients (beta
coefficients) in the structural model are positive, which represents the positive relationships among
the variables except for the NVTC variable which has negative beta coefficient representing a reverse
relationship between NVTC and KTQTMT. All of these relationships are statistically significant at
the 5% level.
The standardized beta coefficients among relationships show stronger or weaker influences among
variables in the research model. When considering the relationship between factors and environmental
management accounting, the level of influence each factor has on environmental management
accounting is arranged in decreasing order: CLMT (β-standardized = 0.385), MTKD (β-standardized = 0.339),
ALQC, NVTC (β-standardized = -0.161), ALMP (β-standardized = 0.151), ALCE (β-standardized = 0.130).


16

Source: Amos data processing results
Figure 4.4: Result of SEM model test of standardized theoretical model
4.4.5.2 Testing the estimates of theoretical model with Bootstrap
After analyzing the SEM model, the study conducted bootstrap testing to re-estimate parameters in the
theoretical model which were previously estimated using the ML (Maximum Likelihood) estimation
method. Bootstrap is a repetitive sampling method in which the initial sample acts as a crowd. To
conduct a bootstrap test, this study will select repeated samples with a size of 500 samples. The
estimating results show that all the Bias and Standard error of Bias are very small and the absolute
critical ratio (CR) is less than 2, so it can be concluded that the deviation is very small and statistically
significant at the 95% confidence interval. Thus, all of the estimates in the theoretical model have
gained credibility.
4.4.5.3 Testing the hypotheses
 Tests on direct impacts
After analyzing and testing the goodness of fit of the SEM model, the next step is to test the

hypotheses. Results of the estimation of causal relationship between the concepts in the research
model are shown in Table 4.24.
Table 4.24 Results of testing the direct impacts
Hypothesis

Relationship

Unstandardized
Coefficients

P-value

Result

H1

ALCE

--->

KTQTMT

0,112

0,011

Accept H1 (5%)

H2

ALQC

--->

KTQTMT

0,156

0,000

Accept H2 (1%)

H3

ALMP

--->

KTQTMT

0,111

0,000

Accept H3 (1%)

H4

MTKD

--->

KTQTMT

0,202

0,000

Accept H4 (1%)

H5

CLMT

--->

KTQTMT

0,200

0,000

Accept H5 (1%)

H6

NVTC

--->

KTQTMT

- 0,169

0,000

Accept H6 (1%)


17
H7

ALCE

--->

ALQC

0,579

0,000

Accept H7 (1%)

H8

ALQC

--->

ALMP

0,140

0,028

Accept H8 (5%)

H9

MTKD

--->

ALMP

0,187

0,000

Accept H9 (1%)

H10

MTKD

--->

CLMT

0,841

0,000

Accept H10 (1%)

Source: Amos data processing results
The result in Table 4.24 shows that the relationships between direct impacts in the model are
statistically significant at the 1% significance level, except for the relationship between ALMP and
ALQC and the relationship between ALCE and KTQTMT which are statistically significant at the 5%
significance level. Moreover, there is a relationship with a negative beta coefficient showing the
opposite effect, which is the relationship between NVTC and KTQTMT (β = -0,169). The remaining
coefficients are positive, indicating direct relationships among variables.
 Tests on indirect impacts
The results of testing intermediate impacts (indirect effects) are given in Table 4.25 as shown below.
Table 4.25 Results of testing the intermediate effects

Hypothesis

Direct
Impact (β)

Indirect
Impact (β)

Result

H7A

ALCE->ALQC->KTQTMT

0,111*

0,1**

Accept H7A

H8A

ALQC->ALMP->KTQTMT

0,157**

0,016**

Accept H8A

H9A

MTKD->ALMP->KTQTMT

0,212**

0,02**

Accept H9A

H10A

MTKD->CLMT->KTQTMT

0,201**

0,17**

Accept H10A

Note: * is the 5% significance level, ** is the 1% significance level.
Source: Amos data processing results
4.4.6 Analysis of variance (Anova Analysis)
4.4.6.1 Analysis of variance according to line of business (firms with environmentally sensitive
and non- environmentally sensitive business).
The result of ANOVA analysis illustrates that at the 1% significance level, it can be concluded that
there is a difference in the implementation of environmental management accounting between
enterprises with environmentally sensitive and non- environmentally sensitive business (Sig. = 0.000).
In particular, enterprises with sensitive business (the mean is 3,24) performed environmental
management accounting more than those with non-sensitive business (the mean of which is 2,35).
4.4.6.2. Analysis of variance by forms of business ownership
The result of the Tamhane test for each pair of ownership indicates that there is a difference in
implementing environmental management accounting between the group of state-owned enterprises
and enterprises with other capital; between foreign-invested enterprises and enterprises with other
capital at the 1% significance level (Sig. = 0,000). Specifically, foreign-invested enterprises (3,25 on
average) and state-owned enterprises (3,11 on average) performed environmental management
accounting at a higher level than enterprises with other capital (2,74 on average) at the 1%
significance level.
4.4.6.3 Analysis of variance according to total assets of the enterprise
The result of Tamhane test for each pair of enterprises’ total assets shows that at a significance level
of 1%, it can be concluded that there is a statistically significant difference in the environmental
management accounting implementation between groups of enterprises with capital scale over 100
billion VND and the remaining groups with other capital scale. It means that the group of enterprises

with capital scale over 100 billion (3,17 on average) performs environmental management accounting
more than the groups with capital scale from 50 to 100 billion (2,91 on average), the group of 20 to 50
billion (the mean is 2,75) and the group of less than 20 billion (the mean is 2,74).


18
4.5 DISCUSSION OF RESEARCH FINDINGS
4.5.1 Key findings from the research
R2 = 64,9% in the linear regression model indicates that independent variables in the model explain
64,9% of the variance in the dependent variable (see Appendix 10.4). All 14 hypotheses were
statistically significant (except for the H1 hypothesis and the H2A hypothesis are statistically
significant at a 5% significance level, the remaining hypotheses are statistically significant at
significance level of 1 %).
Among the 6 direct effects of independent variables, while ALQC, ALMP, MTKD and CLMT all
have postive effects on environmental management accounting implementation at a 1% significance
level, ALCE has a positive impact on environmental management accounting implementation at a 5%
significance level. This implies that in order to promote environmental management accounting
implementation in manufacturing companies in Southern provinces, they should increase ALCE,
ALQC and ALMP, encouraging the implementation of the environmental strategy and increase the
awareness of business environmental uncertainty. The task complexity (NVTC) adversely influences
the implementation of environmental management accounting at a significance level of 1%.
Therefore, in order to promote environmental management accounting implementation, it is necessary
to reduce the difficulties and complexities in the process of implementing environmental management
accounting.
The indirect impact of ALCE on the implementation of environmental management accounting
through the mediating role of ALQC is statistically significant at a 1% significance level and the
indirect effect of ALQC on environmental management accounting implementation through the
mediating role of ALMP is statistically significant at a 1% significance level (see Table 4.25). This
result is consistent with the theoretical expectations and findings of Delmas and Toffel (2004b).
The indirect effect of MTKD on the implementation of environmental management accounting

through the intermediary role of CLMT and ALMP are also statistically significant at the 1%
significance level (see Table 4.25). This result is in accordance with conclusions from the theory and
results from previous studies. For example, Qian (2007) stated that CLKD plays a mediating role in
the relationship between the awareness of business environmental uncertainty and environmental
management accounting implementation in companies. Or the study of DiMaggio and Powell (1983),
which reveals that simulation is a process of mimicking standard patterns to cope with the business
environmental uncertainty.
These results are in harmony with expectations from contingency theories and institutional theories,
as well as in accordance with a large number of previous studies presented in the overview of this
research.
4.5.2 Findings from factors of institutional theory
The result of this study indicates that ALCE, ALQC and ALMP are important factors in promoting
environmental management accounting implementation. Besides, ALMP is also influenced by
awareness of business environmental uncertainty. This result is similar with previous studies. For
instance, Jalaludin et al. (2011) reported that ALMP is the result of responses to awareness of
business environmental uncertainty, or as per DiMaggio and Powell (1983), simulation is a process of
mimicking the standard patterns to deal with awareness of business environmental uncertainty.
4.5.3. Findings from the factors of contingency theory
The findings of this study suggest that all three variables of contingency theory, including task
complexity, environmental strategy, and awareness of business environmental uncertainty are
important factors in promoting environmental management accounting implementation. To be more
specific, awareness of business environmental uncertainty has both direct and indirect effect on
environmental management accounting implementation through the intermediary role of CLMT and
ALMP.
4.5.4 Comparison between the level of explanation of contingency theory and institutional
theory
When comparing the level of interpretation of environmental management accounting implementation
between the two theories, the study reveals that contingency theory has strongly explained the
implementation of environmental management accounting in manufacturing companies. The three
factors of contingency theory explain 61,4% of the variation in environmental management

accounting implementation. Meanwhile, the three factors of institutional theory only explain 35% of


19
the change in environmental management accounting implementation at manufacturing companies in
the southern provinces. Hence, it can be concluded that manufacturing companies in Vietnam seem to
be more likely to implement environmental management accounting for organizational goals
(strategy, mission, environmental uncertainty) rather than seeking legitimacy from social and
community (institutional pressures). This may be because enterprises have not received sufficient
information about the regulations, as well as information on social trends and environment, thereby
weakening the potential motivation from the institutional pressures.
4.6 SUMMARY OF CHAPTER 4
From the result of the qualitative research phase, the author has identified 6 factors that affect
environmental management accounting implementation, as well as the scale measuring environmental
management accounting implementation together with the scale of factors that affect environmental
management accounting implementation.
The quantitative pilot study phase was carried out to revise questionnaires once again so that the
formal survey will be formed.
The result of qualitative research and quantitative pilot research is the formal research model used for
offcial quantitative research.
As regards the result of official quantitative research, 10 factors which impact on environmental
management accounting implementation were detected from the study. In particular, 6 factors have
direct effect and the other 4 have indirect effect. Of the 6 direct effect of independent variables,
ALCE, ALQC, ALMP, MTKD, and CLMT have positive effect on the implementation of
environmental management accounting, whereas task complexity (NVTC) has the negative effect.
Considering the relationship between factors and environmental management accounting, the level of
influence of each factor on environmental management accounting is arranged in decreasing order:
CLMT (β-standardized = 0,385), MTKD (βstandardized = 0,339), ALQC, NVTC (β-standardized = -0,161), ALMP
(β-standardized = 0,151), ALCE (β-standardized = 0,130).
The indirect impact of the business environment on the implementation of environmental

management accounting through the intermediary role of CLMT and ALMP is also statistically
significant at the 1% significance level. Additionally, the study found indirect effect of ALCE on
environmental management accounting implementation through the intermediary role of ALQC and
the indirect effect of ALQC on environmental management accounting implementation through the
intermediary role of ALMP. These results are in accordance with theoretical expectations and findings
from previous studies.
Comparing the level of interpretation of environmental management accounting implementation
between the two theories, the study reveals that contingency theory has strongly explained the
implementation of environmental management accounting in manufacturing companies.
CHAPTER 5: CONCLUSIONS AND SOME IMPLICATIONS
5.1 CONCLUSION
5.1.1 Research objectives
The main objectives of this thesis are: Identifying the factors that (directly and indirectly) affect
environmental management accounting implementation and measuring the level of (direct and
indirect) impact of each factor on environmental management accounting implementation at
manufacturing companies in southern provinces. To achieve these objectives, this thesis applies a
mixed methodology: First, the qualitative research phase is carried out by interviewing 8 experts, then
the quantitative research is conducted by surveying 322 manufacturing companies in the southern
provinces, with the support of SPSS 20 and AMOS 20 data analysis software.
The qualitative research phase helps the author to compile a list of potential explanations for (direct
and indirect) influences on environmental management accounting implementation, it also helps
improve the environmental management accounting implementation scale and scale of factors
affecting the implementation of environmental management accounting at manufacturing companies
in Southern provinces. Thus, the first research objective has been achieved.
The purpose of the quantitative research phase is to analyze the implementation of environmental
management accounting at manufacturing companies and to determine the level of impact each factor
has on environmental management accounting implementation at manufacturing companies in
Southern provinces. The result of survey data analysis helps to measure the level of influence (both
direct and indirect) of factors on environmental management accounting implementation at
manufacturing companies in the southern provinces. Therefore, the second research objective has also

been achieved.


20
5.1.2 Main findings from the study
Results obtained from a sample of 323 manufacturing enterprises have shown that the implementation
of environmental management accounting is merely at an average level (2,95 on a 5-point Likert
scale) and is primarily focused on identifying costs that relates to environment (3,59 on average). The
information processing, information analysis and reporting on the environment are just below
average. The observed variable “Analysis of environmental performance efficiency” has the lowest
mean, standing at 2,19 on the 5-point Likert scale.
Results from the regression and hypotheses test show that all six factors have a statistically significant
effect on environmental management accounting implementation. The most influential factors was
CLMT (βstandardized = 0,385), followed by the effect of factors such as ALQC, NVTC, ALMP. The
weakest influence belongs to ALCE (β-standardized = 0,130). Except for task complexity (NVTC), which
has the adverse effect on environmental management accounting implementation, the other factors
have positive effect on environmental management accounting implementation.
In addition to the direct effect, hypotheses about indirect effect on environmental management
accounting implementation have also been tested and accepted at a 1% significance level. Particularly,
MTKD also has indirect effect on environmental management accounting implementation through the
intermediary role of CLMT and ALMP. ALCE has an indirect impact on environmental management
accounting implementation, through the intermediary role of ALQC. Moreover, ALQC also has an
indirect impact on environmental management accounting implementation, through the intermediary
role of ALMP.
These results indicate that contingency and institutional theories have been very useful in explaining
the implementation of environmental management accounting in manufacturing companies.
5.1.3 Contributions of the research
This study is one of the few studies which analyze the indirect effect on environmental management
accounting implementation based on proposal of Delmas and Toffel (2004); Qian (2007); Gordon and
Miller (1976). This has broadened the influence of factors that may affect the implementation of

environmental management accounting, since further consideration has been given to the intermediary
effect of variables in the model.
In addition, this study also represents the first attempt to analyze the pathway between elements from
two different contexts (organizational and institutional context) to environmental management
accounting implementation, by examining the influence of awareness of business environmental
uncertainty on ALMP in the process of promoting the implementation of environmental management
accounting, based on the theoretical framework of DiMaggio and Powell (1983).
Findings from this study provide a theoretical framework that explains the implementation of
environmental management accounting, based on the combination of contingency theory and
institutional theory. Furthermore, this study has also helps to raise awareness among managers in
Vietnamese manufacturing companies of the role and benefits of environmental management
accounting implementation.Hence, this study has contributed to the implications for impulsing
environmental management accounting implementation in Vietnamese manufacturing companies,
with an aim of increasing economic benefits, protecting the environment and sustainable
development.
5.2 IMPLICATIONS DEVELOPED FROM RESEARCH
5.2.1 Implications developed from institutional theory
Research shows that ALCE comes from official or unofficial pressures exerted by external authorities
(government, regulators, customers, suppliers) that have positive impact on urging and encouraging
enterprises to implement environmental management accounting. This implies that when enterprises
face strong pressure from the government and other authorities, they will increase the level of
environmental management accounting implementation. The results of this study provide support to
the proposals that government and relevant authorities should publish the necessary legal documents
and establish programs, guidelines for implementation, or hand out awards to encourage businesses to
implement environmental management accounting as soon as possible.


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Next, pressure from professional institutions and educational institutions have positive impact on
environmental management accounting implementation. Thus, when ALQC increases, it will

positively impact on environmental management accounting implementation. In other words,
businesses with a high level of awareness of normative pressure (ALQC) are more likely to
implement environmental management accounting than others. This implies that professional agencies
and educational institutions should enhance their role in increasing ALQC on manufacturing
companies in southern provinces to promote environmental management accounting implementation.
Higher educational institutions and professional associations, such as the Vietnam Association of
Accountants, the Association of Chief Accountant should help enterprises recognize the importance
and benefits of environmental management accounting implementation to drive businesses to selfcompliance towards rules, standards and professional ethics.
Finally, ALMP comes from cognitive pillar. In this study, ALMP coming from firms in the same
business sector is the second most influential factor among the factors of institutional theory that
affect environmental management accounting implementation. This result implies that when ALMP is
increased, the environmental management accounting implementation in manufacturing companies
will increase. Therefore, the community of enterprises, such as the Association of Local Enterprises,
the Association of manufacturing enterprises, etc. can play an active role in stimulating their members
to implement environmental management accounting through giving awards for green production,
sustainable production in order to create incentives for businesses to mimic the operation of each
other, including environmental management accounting implementation.
5.2.2 Implications developed from contingency theory
Although environmental management accounting is a tool to provide relevant information for noncompulsory decision making as compared to financial accounting, but if the awareness of business
environmental uncertainty is high, businesses must collect and process a lot of information about the
environment and therefore environmental management accounting implementation will increase. The
result of the study shows that awareness of business environmental uncertainty positively affects
environmental strategy. Thus, in the context of increased business environmental uncertainty,
enterprises will choose to promote environmental strategies and actively apply environmental
management accounting system to manage environmental information. This implies that for the
environmental management accounting to be implemented by manufacturing companies, it is
necessary to increase awareness of business environmental uncertainty and promote environmental
strategies.
According to the results of this study, environmental strategy has the strongest influence on
environmental management accounting implementation (shown through the highest standardized

coefficient which is 0,385). This result implies that CLMT is the most important variable contributing
to environmental management accounting implementation at manufacturing companies in southern
provinces. Thus, in order to diffuse the implementation of environmental management accounting,
the environmental strategy of enterprises should be the first problem to solve and improve. In order to
do this, enterprises need to set general targets and policies on environment in addition to providing
eco-friendly products, commit to comply with environmental regulations and provide solutions to
manage and protect the environment.
The task complexity is also a crucial factor in explaining the implementation of environmental
management accounting. The results show that, the higher the task complexity of environmental
management accounting implementation is, the lower environmental management accounting is likely
to be implemented (the standardized beta coefficient in the regression model is – 0,161). This implies
that in order to increase environmental management accounting implementation, it is necessary to
reduce task complexity when performing environmental management accounting. Therefore, the
relevant authorities should issue guidelines for environmental management accounting
implementation as soon as possible. Moreover, because environmental management accounting
requires multidisciplinary knowledge, in order to reduce the difficulty of quantifying the effect on
environment, it is critical to provide accounting knowledge to those working in the environmental
field, broaden environmental knowledge to accounting staff and combine programs to analyze
environmental information in the accounting software to support the implementation of environmental
management accounting for accountants so as to reduce their time and effort.


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5.3 LIMITATIONS AND SUGGESTIONS FOR FUTURE RESEARCH
5.3.1 Limitations of the research
This study examined manufacturing companies in some provinces in Southern Vietnam with the main
participation of accountants, management accountants or chief accountants (consisting of about 96%
of the respondents). Moreover, respondents in the sample who is in charge of management
accountants position only account for a small percentage. Most of the respondents said that enterprises
do not organize the management accountants department independently with other accounting

departments, but the Financial accounting department or the chief accountants always take care of this
matter. Therefore, when generalizing the results from the research sample, this process should be done
carefully and researchers should expand the scope of research with the participation of other objects
(for example, CFOs, Executive Directors, Management accountants) and service companies which
have not been mentioned in this study should also be added to the sample.
Another limitation relates to the time scope of this study. Due to limited time and resources, survey
data is available only at a timing, future research may be conducted over a long period of time (many
years in a row) to increase the generalization in the next research.
5.4. Further research directions
A number of opportunities for future research are opened up by this study, here are the following
suggestions:
Although the 323 firms surveyed may represent a relatively good sample size for the SEM linear
regression model, future studies should increase sample size for more general results.
On the other hand, this study only examines the relationship among some of the variables belonging
to contingency and institutional theories about environmental management accounting
implementation. Future studies should consider other variables that may affect the process of
performing environmental management accounting such as organizational culture, awareness of the
importance of environmental management accounting.
In addition, future research may investigate the relationships presented in this study to determine
whether the findings from this study may be applied to other contexts.
GENERAL CONCLUSION
This research has made profounding contributions by adding theoretical knowledge and studies on
environmental management accounting, a field in which not much in-depth research has been carried
out. The study was conducted to examine practically the effect that variables of contingency theory
(MTKD, CLMT, NVTC), and variables of institutonal theory (ALCE, ALQC, ALMP) have on
environmental management accounting implementation in manufacturing companies in southern
provinces using the linear regression model. The findings of this study show that there is a positive
and statistically significant relationship between all variables and environmental management
accounting implementation (except for task complexity, which has an adverse relationship with
environmental management accounting implementation). Moreover, the findings from this study are

consistent with foundation theories and findings in previous studies. Empirical evidence from this
study has contributed to the complement of knowledge in environmental management accounting in
particular and the application of innovations in general. The results can also be used to provide
information to managers or decision makers, in order to consider implementing environmental
management accounting with the aim of increasing economic benefits and achieving sustainable
development.
This research represents one of the few empirical studies in Vietnam that analyzes the influence of
factors related to the context of contingency theory and the context of institutional theory on
environmental management accounting implementation. The study also investigates the intermediary
role of CLMT and ALMP in the relationship between awareness of business environmental
uncertainty and environmental management accounting implementation, the effect of ALCE on
ALQC as well as the effect of ALQC on ALMP in the relationship with environmental management
accounting implementation. In the future, further research needed to be conducted to analyze the
impact of factors presented in this study and to add more factors involved in the implementation of
environmental management accounting in order to gain a better understanding of performing
environmental management accounting in other contexts and countries.


THE PUBLICATIONS RELATED TO THE THESIS
I. ARTICLES:
1.

Nguyen Thi Hang Nga (2018), Institutional pressure and environmental management

accounting implementation in manufacturing firms in Vietnam, Journal of Economics and
Development, Vol 250(2)/2018, pp. 129 – 138.
2. Nguyen Thi Hang Nga (2018), The effects of the business environmental uncertainty and
the business strategy to implementing environmental management accounting in
manufacturing firms in Vietnam, Journal of Economics and Development, Vol 252(2)/2018, pp.
42 – 52.

3. Nguyen Thi Hang Nga, Pham Ngoc Toan and Tran Anh Hoa (2017), Corporate characteristics
and the levels of environmental management accounting implementation at manufacturing firms
in Vietnam, Vietnam Association of Accountants and Auditor Journal, Vol 171/2017, pp.53 – 56.
4. Nguyen Thi Hang Nga and Nguyen Kim Nam (2016), The relationship between green
marketing and green brand image in banking industry: the perspective of consumers for
environmental concern, Banking Science & Training Review Journal, Vol 10/2016, pp. 53-58.
5. Nguyen Thi Hang Nga (2017), Organic food purchasing behavior of young consumers: the

role of enviromental concern, Journal of Economics and Development, Vol 126, 5B/2017, pp.
59-71.
6. Nguyen Thi Hang Nga and Nguyen Thi Ngoc Diep (2018), Impacts of green marketing on the
green brand image and equity in banking sector, WSEAS Transactions on Business and
Economics Journal, Vol 15, 2018, pp. 452-460
II. INTERNATIONAL CONFERENCE
1. Nguyen Kim Nam and Nguyen Thi Hang Nga (2016), Oganic food purchasing behavior of
young consumers: The role of environmental concern, Modern indelogies in economics and
governance & the application for Vietnam after joining AEC and TPP, Ho Chi Minh –Vietnam,
ISBN 978-604-922-388-4, pp. 835 - 847
III. SCIENTIFIC RESEARCH TOPIC
1. Green marketing factors affect the green brand image and equity in banking in Vietnamese
commercial banks. Scientific research project at University level, Banking university of Ho Chi
Minh City, 2018, code: CT-1803-83 (research project Manager: Nguyen Thi Hang Nga),
Rank: Good