Environmental Accounting I ‎Manufacturing:‎A Large VS. SME Analysis

Purpose -- This study aims to investigate the disparities in environmental accounting practices between large enterprises and Small and ‎Medium Enterprises (SMEs) in the manufacturing sector, examining how organisational size influences adoption patterns, implementation ‎challenges, and overall effectiveness across diverse geographic contexts.‎

Design/methodology/approach -- The research employs a mixed-methods approach, analyzing data from 187 manufacturing companies ‎‎(93 large enterprises and 94 SMEs) across diverse geographic regions spanning Asia-Pacific, Europe, and North America over the period ‎‎2018-2023. Primary data were collected through structured surveys and semi-structured interviews with key management personnel, while ‎secondary data were obtained from sustainability reports, annual financial statements, and regulatory filings. The study employs multiple ‎regression analysis (R² = 0.742, p < 0.001), structural equation modelling, and thematic content analysis to investigate the relationships ‎between variables.‎

Findings -- Results reveal significant disparities in environmental accounting practices between large enterprises and SMEs. Large ‎enterprises demonstrate more sophisticated systems, comprehensive reporting, and strategic integration of environmental accounting into ‎decision-making processes, driven by greater resource availability and stronger stakeholder pressures. The relationship between ‎environmental accounting implementation and financial performance shows differential impacts based on organizational size (β = 0.618, p < ‎‎0.001 for large enterprises; β = 0.234, p < 0.05 for SMEs). Geographic contexts significantly moderate these relationships, with Asian ‎markets showing higher compliance-driven adoption while European markets demonstrate innovation-oriented approaches.‎

Originality/value -- This study contributes to the literature by providing a comprehensive comparative analysis integrating recent ‎developments in digital transformation and ESG reporting frameworks. The findings offer specific policy recommendations, including tiered ‎regulatory frameworks, digital platform sharing initiatives, and capacity-building programs tailored to organizational size and geographic ‎context‎.