Institutional Pressure and Business Sustainable Performance: Does Environmental Management Accounting Matter?

This study examines the impact of institutional pressures (IP)—specifically coercive, mimetic, and normative pressures—on sustainable business performance (SP) in Oman's manufacturing sector, with a focus on the mediating role of environmental management accounting (EMA). Using data from 307 accounting and finance professionals in Oman-based firms listed on the Muscat Stock Exchange, the analysis found that normative and mimetic pressures significantly correlate with SP, while coercive pressure's effect on SP is positive but insignificant. Additionally, coercive and mimetic pressures positively influence EMA, which in turn has a significant positive effect on SP; however, normative pressure does not significantly affect EMA. The findings highlight EMA's critical mediating role between institutional pressures and sustainable performance, underscoring the importance of environment-friendly policies and accounting practices in fostering sustainability within Oman's industrial context.