Environmental management accounting: the significance of contingent variables for adoption

Environmental management accounting (EMA) has received increasing interest in recent years and has been promoted as a means by which the business community can more easily manage its environmental and associated economic performance. Yet despite increasing interest, theoretically informed projects concerning the current state of EMA development remain scarce. The research presented here aimed to extend current knowledge by investigating whether organisational context could be used to develop a greater understanding of EMA use by Australian organisations. Drawing on contingency theory, a research framework was developed that sought to identify the circumstances under which organisations were more likely to engage with EMA activities, both now and in the future. In order to test this framework a web-based survey of Australian accountants in business was conducted. The data suggested present and future EMA use was associated with environmental strategy, organisational size and environmentally-sensitive industries. Contrary to expectation organisational structure was not found to be associated with accountants' perceptions of EMA use in their organisations. These findings support the potential of contingency-based research to further current knowledge and understanding of the reasons behind EMA development.

► EMA adoption in South Australian organisations is limited.
► The present and future roles of EMA are driven by strategy, industry and size.
►  Organisational structure was not associated with present or future EMA use.
► Contingency theory is a good foundation for determining drivers of EMA adoption.
► Separate guidance documents may be required to promote EMA in different settings.