Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no9.0023

Factors Influencing Environmental Disclosure: A Case Study of Manufacturing Companies in Indonesia  

FUADAH, Luk Luk (Department of Accounting, Faculty of Economics, Sriwijaya University)
SAFTIANA, Yulia (Department of Accounting, Faculty of Economics, Sriwijaya University)
KALSUM, Umi (Department of Accounting, Faculty of Economics, Sriwijaya University)
ARISMAN, Anton (Department of Accounting, Faculty of Economics and Business, MDP University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.9, 2021 , pp. 23-33 More about this Journal
Abstract
The main objective of this research is to examine the effect of organizational culture, environmental uncertainty, and manager's personnel value on environmental disclosure through the environmental organizational structure of manufacturing companies on the Indonesia Stock Exchange. This research uses the structuration and contingency theory. The sample in this study focused on the level of heads or managers or directors of manufacturing companies listed on the Indonesia Stock Exchange. The research data was obtained through an online questionnaire distributed to heads or managers. The total sample of this study is 161 manufacturing companies. The data comprising of 64 respondents was completed and can be processed. Empirical testing used Structural Equation Modeling (SEM) through Partial Least Square (PLS). The result shows that environmental uncertainty and management personnel value have a positive effect on the environmental organizational structure, as well as the environmental organizational structure has a positive effect on the environmental disclosure. However, organizational culture has no effect on the environmental organizational structure. This research can provide benefits for manufacturing companies. The limitation include the low level of response from the respondents. Also the results cannot be generalized due to its specific focus on the manufacturing companies.
Keywords
Organizational Culture; Environmental Uncertainty; Manager Personnel Values; Environmental Disclosure; Environmental Organizational Structure;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Husillos, J., & Larrinaga, C. (2011). The Emergence of Triple Bottom Line Reporting in Spain The emergence of triple bottom line reporting in Spain Javier Husillos Carlos Larrinaga-Gonzalez Maria Jose Alvarez-Gil. Revista Espanola de Financiaci_on y Contabilidad, 60(150), 195-219. https://doi.org/10.1080/02102412.2011.10779701   DOI
2 Englund, H., Gerdin, J., & Burns, J. (2017). Critical Perspectives on Accounting A structuration theory perspective on the interplay between strategy and accounting: Unpacking social continuity and transformation. Critical Perspectives on Accounting, 2016. https://doi.org/10.1016/j.cpa.2017.03.007   DOI
3 Adams, C. A. (2002). Internal organisational factors influencing corporate social and ethical reporting. Accounting, Auditing & Accountability Journal, 15(2), 223-250. https://doi.org/10.1108/09513570210418905   DOI
4 Adams, C. A., & Mcnicholas, P. (2006a). Making a difference organisational change. https://doi.org/ 10.1108/09513570710748553   DOI
5 Adams, C. A., & Mcnicholas, P. (2006b). Making a difference Sustainability reporting, accountability and organisational change. Accounting, Auditing & Accountability Journal, 20(3), 382-402. https://doi.org/10.1108/09513570710748553   DOI
6 Al-Shaer, H. (2018). Do environmental-related disclosures help enhance investment recommendations?: UK-based evidence. Journal of Financial Reporting and Accounting, 16(1), 217-244. https://doi.org/10.1108/JFRA-03-2016-0020   DOI
7 Alvarez-Gil, M. J., Berrone, P., Husillos, F. J., & Lado, N. (2007). Reverse logistics, stakeholders' influence, organizational slack, and managers' posture. Journal of Business Research, 60(5), 463-473. https://doi.org/10.1016/j.jbusres.2006.12.004   DOI
8 Aragon-correa, J. A., & Hiz, D. I. L. (2016). The Influence of Technology Differences on Corporate Environmental Patents: A Resource-Based Versus an Institutional View of Green Innovations. Business Strategy and the Environment, 25, 421-434. https://doi.org/10.2307/256942   DOI
9 Baek, Y. M. (2010). To Buy or Not to Buy: Who are Political Consumers? What do they Think and How Do they Participate? Political Studies, 58, 1065-1086. https://doi.org/10.1111/j.1467-9248.2010.00832.x   DOI
10 Zheng, W., Yang, B., & McLean, G. N. (2013). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763-771. https://doi.org/10.1016/j.jbusres.2009.06.005   DOI
11 Salawu, M. A., Mamman, S., Dahiru, M. T., Ado, G., & Yunusa, N. (2021). Firm-specific Attributes and Environmental Disclosure of Listed Oil and Gas Firms in Nigeria. Global Journal of Accounting, 7(1), 1-14.
12 Denison, D. R., & Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204-223.   DOI
13 Contrafatto, M. (2014). Accounting , Organizations and Society The institutionalization of social and environmental reporting: An Italian narrative. Accounting, Organizations & Society, 39(6), 414-432. https://doi.org/10.1016/j.aos.2014.01.002   DOI
14 Contrafatto, M., & Burns, J. (2013). Social and environmental accounting, organisational change and management accounting: A processual view. Management Accounting Research, 24(4), 349-365. https://doi.org/10.1016/j.mar.2013.10.004   DOI
15 Chandok, R. I. S., & Singh, S. (2017). Empirical study on determinants of environmental disclosure: Approach of selected conglomerates. Managerial Auditing Journal, 32(4-5), 332-355. https://doi.org/10.1108/MAJ-03-2016-1344   DOI
16 Chenhall, R. H. (2003). Management control sysems design within its organizational context: findings from contigency based research and directions for the future. Accounting, Organizations & Society, 28, 127-168. https://doi.org/10.1063/1.5024417   DOI
17 Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4-5), 303-327. https://doi.org/ 10.1016/j.aos.2007.05.003   DOI
18 D'Amico, E., Coluccia, D., Fontana, S., & Solimene, S. (2014). Factors Influencing Corporate Environmental Disclosure. Business Strategy and the Environment, 25(3), 178-192. https://doi.org/10.1002/bse.1865   DOI
19 Deegan, C., & Blomquist, C. (2006). Stakeholder in X uence on corporate reporting: An exploration of the interaction between WWF-Australia and the Australian minerals industry. Accounting, Organizations and Society, 31, 343-372. https://doi.org/10.1016/j.aos.2005.04.001   DOI
20 Coad, A., Jack, L., Othman, A., & Kholeif, R. (2014). Structuration Theory: Reflections on its Further Potential for Management Accounting Research, 2011.
21 Giddens, A. (1984). The Constitution of Society. Cambridge, UK: Polity Press.
22 Ganapathy, E., & Kabra, K. C. (2017). The Impact of Corporate Governance Attributes on Environmental Disclosures: Evidence from India. International Journal of Corporate Governance, 10(1), 24-43. https://doi.org/10.1177/0974686217701464   DOI
23 Giannarakis, G., Andronikidis, A., & Sariannidis, N. (2019). Determinants of environmental disclosure: investigating new and conventional corporate governance characteristics. Annals of Operations Research, 294(1-2), 87-105. https://doi.org/10.1007/s10479-019-03323-x   DOI
24 Giddens, A. (1979). Central Problems in Social Theory Action, Structure and Contradiction in Social Analysis. London, UK: Macmillan Education Ltd.
25 Giddens, A. (1990). The Consequences of Modernity. Cambridge, UK: Polity Press.
26 Gordon, G. G. (1992). Predicting Corporate Performance from Organizational Culture. Journal of Management Studies, 29(6), 1-17. https://doi.org/10.1111/j.1467-6486.1992.tb00689.x   DOI
27 Gordon, L. A., & Narayanan, V. K. (1984). Management accounting systems, perceived environmental uncertainty and organization structure: An empirical investigation. Accounting, Organizations and Society, 9(1), 33-47. https://doi.org/10.1016/0361-3682(84)90028-X   DOI
28 Nguyen, T. K. T. (2020). Studying Factors Affecting Environmental Accounting Implementation in Mining Enterprises in Vietnam. Journal of Asian Finance, Economics and Business, 7(5), 131-144. https://doi.org/10.13106/jafeb.2020.vol7.no5.131   DOI
29 Gray, R., Adams, C. A., & Owen, D. (2014). Accountability, Social Responsibility and Sustainability Accounting for Society and the Environment. New York: Pearson Education, Inc.
30 Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.   DOI
31 Naor, M., Goldstein, S. M., Linderman, K. W., & Schroeder, R. G. (2008). The role of culture as driver of quality management and performance: Infrastructure versus core quality practices. Decision Sciences, 39(4), 671-702. https://doi.org/10.1111/j.1540-5915.2008.00208.x   DOI
32 Ifada, L. M., Indriastuti, M., Ibrani, E. Y., & Setiawanta, Y. (2021). Environmental Performance and Environmental Disclosure: The Role of Financial Performance. Journal of Asian Finance, Economics and Business, 8(4), 349-362. https://doi.org/10.13106/jafeb.2021.vol8.no4.0349   DOI
33 Hassan, A., & Guo, X. (2017). The relationships between reporting format, environmental disclosure and environmental performance An empirical study. Journal of Applied Accounting Research, 18(4), 425-444. https://doi.org/10.1108/JAAR-06-2015-0056   DOI
34 Hemingway, C. A., & Maclagan, P. W. (2004). Managers' Personal Values as Drivers of Corporate Social Responsibility. Journal Business Ethics, 50(1), 33-44.   DOI
35 Schwartz. (2003). A proposal for measuring value orientations across nations, Package of the European Social Survey. Available at: Www.Europeansocialsurvey.Org/Docs/Methodology/Core_ess_questionnaire/ESS_core_questionnaire_human_values.Pdf.
36 Luque-Vilchez, M., Mesa-Perez, E., Husillos, J., & Larrinaga, C. (2019). The influence of pro-environmental managers' personal values on environmental disclosure: The mediating role of the environmental organizational structure. Sustainability Accounting, Management and Policy Journal, 10(1), 41-61. https://doi.org/10.1108/SAMPJ-01-2018-0016   DOI
37 Orlikowski, W. J. (2000). Using Technology and Constituting Structures; A Practice Lens for Studying Technology in Organizations. Organization Science, 11(4), 404-428.   DOI
38 Sewell, W. H. (1992). A Theory of Structure: Duality, Agency, and Transformation. American Journal of Sociology, 98(1), 1-29.   DOI
39 McDermott, C. M., & Stock, G. N. (1999). Organizational culture and advanced manufacturing technology implementation. Journal of Operations Management, 17(5), 521-533. https://doi.org/10.1016/S0272-6963(99)00008-X   DOI
40 Miller, D. (1988). Relating Porter'S Business Strategies to Environment and Structure: Analysis and Performance Implications. Academy of Management Journal, 31(2), 280-308. https://doi.org/10.2307/256549   DOI
41 Nguyen, T. L. H., Nguyen, T. T. H., Nguyen, T. T. H., Le, T. H. A., & Nguyen, V. C. (2020). The determinants of environmental information disclosure in vietnam listed companies. Journal of Asian Finance, Economics and Business, 7(2), 21-31. https://doi.org/10.13106/jafeb.2020.vol7.no2.21   DOI
42 Otley, D. T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 413-428. https://doi.org/10.1016/0361-3682(80)90040-9   DOI
43 Fey, C. F., & Denison, D. R. (2003). Organizational Culture and Effectiveness: Can American Theory be Applied in Russia. Organization Science, 14(6), 686-706.   DOI
44 Archer, M. S. (2003). Structure , Agency and the Internal Conversation (Issue June). Cambridge, UK: Cambriidge University Press.
45 Dillard, J., & Pullman, M. (2017). Cattle, Land, People, and Accountability Systems: The Makings of a Values-based Organisation. Social and Environmental Accountability Journal, 0(0), 1-26. https://doi.org/10.1080/0969160X.2017.1284600   DOI
46 Du, X. (2018). A Tale of Two Segmented Markets in China: The Informative Value of Corporate Environmental Information Disclosure for Foreign Investors. International Journal of Accounting, 53(2), 136-159. https://doi.org/10.1016/j.intacc.2018.05.001   DOI
47 Eljayash, K. (2017). Environmental disclosure studies in Middle East and Northern Africa in shadow of theoretical context. World Journal of Entrepreneurship, Management and Sustainable Development, 13(4), 334-349. https://doi.org/10.1108/wjemsd-02-2017-0007   DOI
48 Fernandez, E., Junquera, B., & Ordiz, M. (2006). Managers' Profile in Environmental Strategy: A Review of the Literature. Corporate Social Responsibility and Environmental Management, 13, 261-274.   DOI
49 Islam, M. A., & Deegan, C. (2010). Media pressures and corporate disclosure of social responsibility performance information: A study of two global clothing and sports retail companies. Accounting and Business Research, 40(2), 131-148. https://doi.org/10.1080/00014788.2010.9663388   DOI
50 Islam, M. Z., Jasimuddin, S. M., & Hasan, I. (2015). Organizational culture, structure, technology infrastructure and knowledge sharing: Empirical evidence from MNCs based in Malaysia. Vine, 45(1), 67-88. https://doi.org/10.1108/VINE-05-2014-0037   DOI
51 Cadez, S., & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting. Accounting, Organizations and Society, 33(7-8), 836-863. https://doi.org/10.1016/j.aos.2008.01.003   DOI
52 Papagiannakis, G., & Lioukas, S. (2012). Values, attitudes and perceptions of managers as predictors of corporate environmental responsiveness. Journal of Environmental Management, 100, 41-51. https://doi.org/10.1016/j.jenvman.2012.01.023   DOI
53 Bardi, A., & Schwartz, S. H. (2003). Values and Behavior: Strength and Structure of Relations. Personality and Social Psychology Bulletin, 29(10), 1207-1220. https://doi.org/10.1177/0146167203254602   DOI
54 Kotey, B., & Meredith, G. G. (1997). Relationships among Owner / Manager Personal Values, Business Strategies, and Enterprise Performance. Journal of Small Business Management, 35(April), 37-64.
55 Liao, C., Chuang, S., & To, P. (2011). How knowledge management mediates the relationship between environment and organizational structure. Journal of Business Research, 64(7), 728-736. https://doi.org/10.1016/j.jbusres.2010.08.001   DOI
56 Liesen, A., Hoepner, A. G., Patten, D. M., & Figge, F. (2015). Does Stakeholder pressure influence corporate GHG emissions reporting? Empirical Evidence from Europe. Accounting, Auditing & Accountability Journal, 28(7), 1074-1074.
57 Lysonski, S., Levas, M., & Lavenka, N. (1995). Environmental uncertainty and organizational structure: a product management perspective. Journal of Procuct and Brand Management, 4(3), 7-18.   DOI
58 Beck, A. C., Campbell, D., & Shrives, P. J. (2010). Content analysis in environmental reporting research: Enrichment and rehearsal of the method in a British-German context. British Accounting Review, 42(3), 207-222. https://doi.org/10.1016/j.bar.2010.05.002   DOI
59 Rao, K. K., Tilt, C. A., & Lester, L. H. (2012). Corporate governance and environmental reporting: an Australian study. Corporate Governance: The International Journal of Business in Society, 12(2), 143-163. https://doi.org/10.1108/14720701211214052   DOI
60 Deegan, C., Rankin, M., & Tobin, J. (2002). An examination of the corporate social and environmental disclosures of BHP from 1983-1997: A test of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3), 312-343. https://doi.org/10.1108/09513570210435861   DOI
61 Caprara, G. V., & Steca, P. (2007). Prosocial Agency: The Contribution of Values and Self Efficacy Beliefs to Prosocial Behavior Across Ages. Journal of Social and Clinical Psychology, 26(2), 218-239.   DOI
62 Thompson, V. A. (1967). Bureaucracy and Innovation. New York: McGraw Hill.
63 Buhr, N. (2002). A Structuration View On the initiation of Environmental Reports. Critical Perspectives on Accounting, 14, 17-38. https://doi.org/10.1006/cpac.2000.0441   DOI
64 Scheidgen, K. (2021). Degrees of integration: how a fragmented entrepreneurial ecosystem promotes different types of entrepreneurs. Entrepreneurship and Regional Development, 33(1-2), 54-79. https://doi.org/10.1080/08985626.2020.1734263   DOI
65 Schein, E. H. (2003). Organizational Culture and Leadership. San Francisco, CA: Josey-Bass Publishers.
66 Schwartz, S. H. (2010). Basic Values: How They Motivate and Inhibit Prosocial Behavior. In Prosocial Motives, Emtions and Behaviour: The Better Angels of Our Nature (pp. 221-241). American Psychological Association. https://doi.org/10.1037/12061-012
67 Stock, G. N., McFadden, K. L., & Gowen, C. R. (2007). Organizational culture, critical success factors, and the reduction of hospital errors. International Journal of Production Economics, 106(2), 368-392. https://doi.org/10.1016/j.ijpe.2006.07.005   DOI
68 Whittington, R. (2015). Giddens, structuration theory and strategy as practice. Cambridge Press. https://doi.org/10.1017/CCO9781139681032.009