Adoption of green accounting: A case of Viet Nam

Abstract

This research investigates the determinants of adopting Green Accounting (GA) in Ho Chi Minh City manufacturing companies in Vietnam. From a comprehensive framework derived from Institutional Theory, Cost-Benefit Analysis (CBA), and Contingency Theory, the research identifies significant determinants including coercive pressures (CP), cost of GA implementation (CGA), accountants' quality (QA), and firm size (FS). The information from 258 responses was analyzed using PLS-SEM with strict statistical tools such as Cronbach's alpha, AVE, and composite reliability (CR), to offer confidence regarding model reliability and validity. The findings reveal that external pressures, cost considerations, and accounting staff qualifications are major determinants of GA adoption. Surprisingly, accountant quality significantly impacts successful GA utilization, indicating the necessity of specialized training and experience in handling the complexities of sustainable accounting procedures. The firm's size was also found to be an influential factor, with larger firms being more adopters of GA systems as they have more resources to invest in GA adoption. While the Cost of implementing Green Accounting did not emerge as a significant driver, the study highlights the influence of external institutional pressures and internal resource readiness in advancing GA adoption. These findings underscore the need for targeted actions, including capacity building of accounting practitioners and incentives for firms to implement sustainable practices. The study presents key policy implications for Vietnamese policymakers and business leaders, providing actionable recommendations for promoting widespread GA adoption and supporting sustainable development goals