Environmental Management Accounting Model for Sustainable Manufacturing Smes: Evidence From Indonesia and Malaysia

This study explores how Environmental Strategy and Technology Strategy influence Business Sustainability through Environmental Management Accounting (EMA) in manufacturing SMEs in Indonesia and Malaysia. It also examines whether Green Mindfulness and Stakeholder Pressure enhance EMA's strategic function in sustainability-focused decision-making. Using a quantitative cross-sectional survey of 288 manufacturing SMEs, the research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze direct, mediating, moderating, and cross-country effects. The results show that environmental and technological strategies are key drivers of EMA adoption, with EMA serving as an essential mechanism for translating strategic goals into sustainability performance. Additionally, managerial environmental awareness and external stakeholder demand strengthen EMA effectiveness, though these effects are more conditional than those of direct drivers. Comparative findings suggest that Malaysian SMEs are better prepared internally, technologically, and financially, whereas Indonesian SMEs face stronger external sustainability pressures. This research advances understanding of environmental accounting and SME sustainability by framing EMA as a dynamic managerial capability that links strategy, technology, cognition, and institutional pressures in emerging Southeast Asian economies.