Environmental management accounting as a mediating mechanism between green intellectual capital and sustainability performance

Abstract

The concept of organizational sustainability has evolved from initially only covering economic, social, and environmental aspects to also including governance, cultural, and spiritual dimensions. Nonetheless, the accounting literature remains insufficient in elucidating the conversion of eco-based resources into holistic sustainability performance, especially within the hospitality sector. This study aims to examine the role of Environmental Management Accounting (EMA) as a mediating variable in the relationship between Green Intellectual Capital and Quintuple Sustainability Performance (QSP). This research employs a survey-based quantitative approach involving 162 managers from four- and five-star hotels in Bali Province. Data were collected through a structured questionnaire adapted from previous studies. Partial Least Squares–Structural Equation Modeling (PLS-SEM) was used to analyze the data. This was followed by mediation testing and robustness checks. The results indicate that EMA significantly increases QSP. Results show that EMA significantly improves QSP. Green Human Capital and Green Structural Capital have a significant positive impact on QSP, whereas Green Relational Capital has no significant positive impact on QSP. However, all the dimensions of Green Intellectual Capital show significant indirect effects on QSP via EMA. The EMA plays a full mediation role in the relationship between Green Relational Capital and QSP. The EMA plays a partial mediation role in the relationship between Green Human Capital and QSP and between Green Structural Capital and QSP. These results confirm the strategic role of EMA as a key tool to improve multidimensional sustainability performance. This research contributes to the sustainability accounting literature by integrating Environmental Management Accounting into the quintuple bottom line paradigm, while offering practical implications for the hospitality industry in designing structured and contextual sustainability initiatives.