From green knowledge to innovation: the transformation mechanisms of environmental management accounting and ESG management

Abstract

Purpose: This study examines how green absorptive capacity (GAC) contributes to green innovation (GRIN) through environmental management accounting (EMA). It also investigates whether environmental, social, and governance management (ESGM) strengthens the relationships among GAC, EMA, and GRIN. Design/methodology/approach: A quantitative research design was adopted using survey data collected from 222 Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) of Vietnamese manufacturing firms. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). Findings: The findings show that GAC positively influences EMA but does not directly enhance GRIN. EMA significantly promotes GRIN and mediates the relationship between GAC and GRIN. In addition, ESGM strengthens the effects of GAC on EMA and EMA on GRIN. These findings extend absorptive capacity theory and stakeholder theory in the context of a developing economy. Originality/value: This study integrates GAC, EMA, and ESGM into a unified framework to explain GRIN in Vietnamese manufacturing firms. It highlights the mediating role of EMA and the moderating role of ESGM, offering new insights into how firms transform green knowledge into innovation outcomes.