The Role of Environmental Information System Mediation on the Effect of Environmental Strategy and Compliance with Government Regulation on Environmental Performance (Pilot Study of Companies in Indonesia)

Abstract

The purpose of this study was to examine the effect of environmental strategy and compliance with government regulations on environmental performance mediated by environmental information systems at companies in Indonesia. This study is a quantitative research in the form of causal studies which uses the statistical techniques of Partial Least Square (PLS). Data is analyzed using structural model, the goodness of fit model and hypothesis testing. The findings of the study show that the environmental information system fully mediates the effect of environmental strategies on environmental performance. It also shows that compliance with government regulations directly affect environmental performance. The limitation of this research is in the number of samples collected which amounted to 29. This condition limits the research into a pilot study. In subsequent research, the number of samples can be increased and the use of primary data can be developed using secondary data. The novelty of this research lies in the examination of the role of mediation of environmental information systems for companies in Indonesia, which, to date, have not been found. The results of this study provide practical implications that environmental performance and economic performance can be achieved simultaneously and that good environmental performance will bring a competitive advantage to the company, so the companies should start thinking of implementing this environmental information system. In addition, government regulations supported by advisory program, strict supervision and reward and punishment mechanisms are expected to improve the condition of the natural environment in Indonesia which is vulnerable to pollution and damage.

Keywords: Environmental Accounting, Environmental Information Systems, Environmental Performance