Jurnal Ekonomi
Vol. 12 No. 04 (2023): Jurnal Ekonomi, 2023

THE ENVIRONMENTAL MANAGEMENT ACCOUNTING ANALYSIS TO ENCOURAGE PRODUCT INNOVATION IN THE FABRIC INDUSTRY

Mochamad Fahru Komarudin (Universitas Bina Bangsa, Indonesia)



Article Info

Publish Date
12 Oct 2023

Abstract

The purpose of this study is to investigate the effect that implementing environmental management accounting has on the rate of product innovation within the textile manufacturing industry. Through a qualitative research approach, this research involves a descriptive analysis approach. In the industrial district of Cilegon City, primary data collection consisted of interviews with players in the textile industry and professionals engaged in the industry. The study's results reveal that the use of environmental management accounting in the fabric industry has provided a positive impetus to the resulting product innovation. When ecological management accounting is implemented, industrial managers gain a more in-depth understanding of managing production activities. It is particularly beneficial for Knitting, Dyeing, and Finishing managers. Nevertheless, there are restrictions to be seen in certain aspects of the industry's specific environmental cost disclosure in its financial reports. Environmental management accounting encourages innovative concepts for industry players, which stimulates the transformation of waste from industrial processes into valuable innovative products. The findings of this study highlight the significance of incorporating the idea of sustainable accounting into the process of driving innovation in the fabric industry sector. It could positively affect both the economy's growth and the environment's state.

Copyrights © 2023






Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSNĀ 2301-6280, e. ISSNĀ 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...