ENVIRONMENTAL MANAGEMENT ACCOUNTING IN THE ENERGY TRANSITION: A HIGHER-ORDER MODEL OF BUSINESS TRANSFORMATION AND COASTAL MSME RESILIENCE
DOI:
https://doi.org/10.35794/xfrpz287Abstract
Environmental Management Accounting (EMA) is increasingly important for firms navigating the energy transition, because changes in energy prices, renewable-energy technologies, decarbonization requirements, and resource-efficiency expectations create new physical and monetary information needs. This study develops a higher-order PLS-SEM model that places EMA at the center of the firm-level response to energy transition. Energy Transition Response is conceptualized as a multidimensional higher-order construct comprising energy efficiency and conservation, renewable-energy adoption, low-carbon and energy investment, and energy-related innovation and R&D. EMA is positioned as a preventive managerial information capability that converts physical energy and environmental information, together with related costs, savings, investments, risks, and contingencies, into actionable decisions. The model examines whether Energy Transition Response strengthens EMA, whether EMA facilitates Business Transformation, and whether Business Transformation enhances Coastal MSME Resilience. Direct and sequential mediation effects are also specified. By making the relationship between energy transition and EMA explicit, the framework extends prior circular eco-innovation research in which energy was embedded within broader environmental innovation constructs. The proposed model is designed for hierarchical component modelling using PLS-SEM and is particularly relevant to resource-constrained coastal MSMEs exposed to energy, environmental, and market uncertainty.
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