Isomorphic Factors in Corporate Environmental Management Accounting Implementation and Environmental Accountability in Ghana

Abstract

There is a growing debate on the activities and concomitant environmental effects of environmentally sensitive industries. The concern for firms to report on their environmental impacts is key to environmental accountability practice (EAP) to stakeholders. However, a review of the literature indicates, that there is limited research on how isomorphic factors (ISF) and environmental management accounting techniques (EMAT) impact EAP in sub-Saharan Africa. This thesis examines the inter-relationships between the isomorphic factors, EMAT and EAP among selected environmentally sensitive firms in Ghana. It also evaluates the mediating role of EMAT implementation in the association of ISF with EAP. The theoretical perspectives draw on the Institutional Theory of Isomorphism and the Social Issue Life Cycle Model (SILC). Using questionnaire-based cross-sectional data of environmentally sensitive firms, multiple OLS regression models and mediation analysis, the hypothesised relationships were estimated. The results revealed a significant and positive relationship of mimetic and normative forces with EAP. While coercive and normative factors significantly and positively related with EMAT, EMAT implementation was positively and significantly associated with EAP. Importantly, firms under the commitment phase of the SILT were more likely to engage in EAP. Moreover, EMAT implementation mediated the relationship between isomorphic factors and EAP. Findings are largely consistent with the adopted theoretical predictions and present potential implications for policy makers and professional bodies. Efforts to ensure EAP among environmentally sensitive firms in low and middle level income settings should include strategies to strengthen isomorphic pressures and EMAT implementation.