Application of environmental management accounting and strategy to company innovation with research and development effort and company size as control variables

The global industrial world is significantly impacted by technological advancements, necessitating the establishment of regulations to enhance organizational implementation inside companies and attain optimal objectives. The norms of management accounting provide the provision of precise information for strategic and tactical decision-making in management. The objective of this study is to analyze the direct and indirect impact of accounting, environmental management, and strategy on company innovation. The study will also consider research and development activities and company size as control factors. Primary data will be used for the analysis. The sample size for this study consisted of 155 employees. The investigation involved collecting 112 samples using the Slovin formula. The analysis approach employed was multiple linear regression analysis. The study findings indicate that all variables exert a favorable impact on firm innovation. Therefore, the utilization of environmental management accounting and the execution of strategies in a reputable company will result in multiple innovations and strategies, including the reduction of product waste pollution, mitigation of global warming impacts, heightened awareness of minimizing environmental costs that may harm the environment, and the creation of new


Introduction
Technological advances greatly affect the global industrial world which requires rules for improving organizational implementation in a company to achieve maximum goals.These rules cause the field of management accounting to provide accurate information in terms of determining management decisions strategically and tactically.
The presence of various problems such as the effects of global warming, environmental effectiveness, and industrial activities that affect the environment such as environmental pollution has a negative impact on society.In this case, the community plans to prevent the effects of global warming.
Efforts to prevent the effects of global warming are one of the hottest news debated today.An accountant is an important factor to make a company to implement a green company.Because an accountant is able to provide company operational information in the form of financial statements based on Environmental Management Accounting (EMA).
With increasing awareness of environmental issues, especially as a product of the current phenomenon of global warming, accounting began to penetrate into the social and environmental area as a new accounting science.Environmental management accounting shows the real cost of business inputs and processes and ensures cost efficiency and measures the cost of quality and services.The purpose of environmental management accounting is to comply with laws related to environmental protection to reduce the impact of environmental costs.
There are facts published by several media such as Banten News and Depok Pos regarding environmental pollution problems, especially in water sanitation or waterways carried out by companies in various fields including companies engaged in automotive, car showrooms, which causes the business environment to be able to maintain its business processes, so the company must implement appropriate strategies in order to create the goals of the company.
Negative impacts in terms of environmental health in a company such as a car showroom are a source of problems for the environment.This problem is if the waste oil produced is not managed properly.Through the application of environmental management accounting, researchers hope that there will be product and service innovations by related agencies related to the environment that can be presented in financial statements.In other words, more agencies will disclose environmental costs to be taken into consideration in conducting operational activities and determining sustainable company strategies.
There are still many very significant environmental problems, news in the mass media about the alleged disposal of B3 waste in the form of oil as happened in several rivers in the Banten province in this study.
A product innovation in technological developments becomes the most important problem in the company to compete in the market.Almost all companies are now competing to release the latest products in accordance with current developments.However, innovation is sometimes not sustainable with the impact produced by the company so that process innovation is also needed in producing a product so that the impact of environmental pollution does not occur.Increased awareness about environmental issues has prompted organizations to use environmental management accounting, which is said to provide many benefits to users including increased innovation.
The problem in this study is whether the application of environmental management accounting affects product innovation, process innovation and whether strategy affects product innovation and process innovation.While the purpose to be achieved in this study is to know and prove the influence of the application of environmental management accounting on product innovation, process innovation and to know and prove the influence of strategy on product innovation and process innovation.

Innovation
Innovation is seen as the creation and implementation of 'new combinations'.The term new combination can refer to new products, services, work processes, markets, policies and systems.In innovation, added value can be created, both to the organization, shareholders, and the wider community.Therefore, most definitions of innovation include the development and implementation of something new (De Jong & ;De Hartog, 2003) Adair, 1996) while the term 'new' is explained (Adair, 1996) does not mean original, but rather newness.The meaning of this novelty is made clear by Schumpeter's opinion that innovation is creating and implementing something into a combination.With innovation, one can add value from products, services, work processes, marketing, delivery systems, and policies, not only for the company but also stakeholders and society (De Jong & De Hartog, 2003).
In conditions of environmental factors that tend to be uncertain with the level of market changes and dynamic competition, companies are required to always be able to adjust their business model to the situation.Only companies that succeed in placing innovation as a reference to their business model will be able to improve the performance and survival of the company (Frank, 2007).
Innovation in general is an important aspect of many businesses that can contribute to gaining a competitive advantage.Evidence shows that companies that place more emphasis on business models based on innovation have experienced higher operating and sales growth rates ( Ferrari andParker, 2006: Klom &Van Leuweun 2001).
Genically, innovation is defined as the "adoption" and "diffusion" of new ideas or ideas within a firm (Thomas et all, 1998;Damanpour, 1991Damanpour, , 1996) ) The creation of new ideas or the adoption of something new can be said to be innovation if it can be commercialized into a product or service that consumers want.Good innovation will produce new quality products or services at a lower cost, improvised products with new attributes produce products that are different from before (Berry et al., 2006).So innovation must be distinguished from invention.
Management experts state that innovation is one of the guarantees for companies or organizations in increasing their competitiveness.One of them according to Peter F. Drucker, 2012in Novia (2015) said that innovation is a necessity and must be a discipline.The concept of innovation has a long history and different senses, mainly based on competition between companies and different strategies applied by the companies themselves.Schumpter (1989) in Novia (2015) states that innovation consists of five elements, namely: i.
Introducing new products or qualitative changes to existing products.ii.
Introducing new processes to the industry.iii.
Opening new markets.iv.
Develop new sources of supply on raw materials or other inputs.v.

Changes in industry organizations
To measure company innovation consists of eight indicators questions obtained from Ferreira et al (2010), namely new products, product modifications, product pioneers, high product percentages, introduce new processes.Innovation can be conceptualized in several ways, namely by considering product innovation and process innovation.

Environmental Management Accounting
Environmental management accounting is a subsection of environmental accounting that describes a number of issues regarding the issue of quantifying the company's business impacts into a number of monetary units.Environmental management accounting can also be used as a benchmark in environmental performance.Environmental management accounting takes business decisions to serve business managers in taking a number of investment capital decisions, financing determinations, product design process or decisions, performance evaluation and a large number of other future business decisions.
Generally, environmental management accounting is used to provide information in an organization's decision-making, although the information is produced for other purposes, such as external reporting.The view that environmental management accounting predominantly relates to providing information for internal decision making is consistent with the USEPA (1995) definition, where the U.S. EPA describes environmental management accounting as a "process of identifying, collecting and analyzing information about costs and performance to assist organizational decision making".
The elements of environmental accounting are divided into several types.The first type is environmental costs.The second type is the advantages of environmental conversion, while the third type deals with the economic benefits of environmental conversion activities.
Environmental costs are basically related to the cost of products, processes, systems or facilities essential for better management decision making.Environmental costs can be classified in any or all of the different categories of companies.To measure environmental management accounting consists of twelve indicators questions obtained from Ferreira et al (2010) y namely environmental cost identification, estimation of environmental contingent liabilities, classification of environmental costs, allocation of environmental costs associated with production processes, allocation of environmental costs related to products, introduction or improvement of environmental management costs, creation and use of environmental cost accounts, development and use of key environmental performance indicators (KPIs), product life cycle cost assessment, product inventory analysis, product impact analysis, product improvement analysis.

Strategy
Strategy places the parameters of an organization in terms of determining the place of business and the way the business competes.Strategy shows the general direction that an organization (company) wants to take to achieve its goals.Strategy is a big plan and an important plan.Every well-managed organization has a strategy, although it is not explicitly stated (Pandji, 2009).To measure the compensation system developed from Ferreira et al (2010) which consists of five question indicators, namely the position of the company, stability of products and services, market demand, market opportunities, market development.

Research and Development Effort
Research and Development Effort is the investigative activity of a business to select conduct business activities in accordance with its objectives and make a discovery that can either lead to the development of a new product or process, or the improvement of an existing product or process (innovation).
An organization's Research and Development Effort also tends to have an influence on the level of process and product innovation (Ferreira et al, 2010).Larger organizations in terms of company size tend to have higher levels of innovation given the availability of resources such as finance, high-quality staff, advantages of economies of scale and better working organizations (Mairesse and Mohnen, 2002).

Company Size
Company size is a scale where companies can be classified according to various ways, including: total assets, log size, stock market value, and others.Basically, according to Suwito and Herawaty (2010) in Riska (2016) company size is only divided into 3 categories, namely: large firms, medium-size companies and small firms.The determination of the size of the company is based on the company's total assets and the number of company employees.
The following is the framework model in the research below:

Research and Methodology
The Research Model and Design used in this research is primary data.Population and Sample in this study The study is employees who work at Honda Car Showroom dealers in the Banten Province area, specifically the Finance division and General Affairs (GA) division that handles and controls waste disposal, which is as many as 155 people taken in 2023 The determination of samples in this study using the Purposive Sampling technique amounted to 112.The method used for data collection in this study is the questionnaire method, namely by distributing questionnaires to car showroom employees who work in the finance and general affairs section.

Analysis and findings
The results and findings in this study can be explained in the tables below:   Based on the identification of the Cronbach Alpha item of each of the above variables, nothing is less than 0.60 or 60%.This shows that the construct is reliable.The table above shows that the significance value of the environmental management accounting variable (X1) is 0.13, the strategy variable (X2) is 0.311; and the variable of research and development effort and company size (control variable) is 0.16.The test results can be concluded that all significance values are greater than 0.05, so it can be said that the three variables do not occur symptoms of heteroscedasticity.

Multiple Linear Regression Test Results
In regression testing in this study, results were obtained as seen in the following table: From the calculation results of the F test, it can be seen that the independent variable with the control variable together has a significant influence on the dependent variable.This can be proven from the Fcalculate value of 97.342 > Ftable 2.69 (Ftable = F (k ; n-k) = F (3 ; 112 -3) = F (3 ; 109)) with significance 0.000 < 0.05.Because the significance is much smaller than 0.05 or 5%, the F test model used in this study is fit to be used in predicting corporate innovation variables, or it can be said that environmental management accounting variables (X1), strategy (X2), and Research and Development Effort and Company Size (Control Variable) together or simultaneously affect company innovation (Y).

Discussion
Based on the theory and explanation above, the discussion of hypotheses can be explained as follows: The Effect of the Application of Environmental Management Accounting on Company Innovation (Product Innovation and Process Innovation) Based on the results of tests that have been conducted in this study, in company innovation (product innovation) there are several benefits felt by the company when the company applies environmental management accounting such as, reducing product waste pollution produced by the company, reducing the effects of global warming problems, minimizing ineffective costs.With a system like this, the company is able to innovate new products that are of high quality and ready to air in the market share.
In corporate innovation (process innovation) there are several benefits felt by the company when the company implements environmental management accounting such as, the company can improve the quality of process performance so that it can be more advanced and modern, and the company's awareness reduces the burden of environmental costs that can damage the environment.

The Influence of Strategy on Company Innovation (Product Innovation and Process Innovation)
Based on the results of testing that has been conducted in this study, in company innovation (product innovation) there are several benefits felt by the company when the company implements strategies such as, creating new opportunities to perfect quality products so that it can maintain its company's business, the company is able to adjust to market demand desired by the community and the company is able to be a pioneer in creating new product innovations.
In corporate innovation (process innovation) there are several benefits felt by the company when the company implements strategies such as, creating process innovations that are more efficient and effective in order to summarize time in their work, and the company is able to perfect process innovation so that the company can maintain the company's profit cost revenue in the market share for a very long time.

Conclusion
The application of environmental management accounting has a positive relationship with product innovation and process innovation in the automotive field, such as reducing product waste pollution produced by the company, reducing the effects of global warming problems, and the company's awareness of reducing the burden of environmental costs that can damage the environment.The company's activities are also supported by research and development efforts built by the company and can also be seen from the size of the company which has a positive impact on the company to create quality product innovations and process innovation activities more effectively and efficiently.
In this study, it can be concluded that, strategy has a positive relationship with product innovation and process innovation in the automotive field such as new opportunities to perfect quality products so that it can maintain its company's business, the company is able to adjust to market demand desired by the community and the company is able to be a pioneer in creating new product innovations, and creating more efficient and effective process innovations in order to summarize time in his work.The company's activities are also supported by research and development efforts that are built to have a positive impact as a form of motivation to innovate, as well as the size of the company.If the company implements this system, then workers will naturally help the product innovation process to the company, and process innovation in the company makes work process activities more effective and efficient.

Table 1 :
Descriptive Statistical Test ResultsBased on the processing of descriptive analysis data above, it can be described: Environmental Management Accounting (X1), Strategy (X2), Research and Development Effort and Company Size (X3) fiber Company Innovation (Y) from 112 respondents showed a mean value greater than standard deviation, thus indicating good results, namely the data showed normal results and did not cause bias.

Table 2 :
Environmental Management Accounting Validity Test Results (X1)Based on the table above, it is known that the total correlation value in the Environmental Management Accounting variable (X1) is between 0.394 to 0.730 exceeding the table r value = 0.195, so it can be said that all statements in the environmental management accounting variable (X1) are declared valid.

Table 3 :
Strategy Validity Test Results (X2) Source: Processed dataBased on the table above, it is known that the total correlation value in the Strategy variable (X2) is between 0.234 to 0.543 exceeding the table r value = 0.195, so it can be said that all statements in the strategy variable (X2) are declared valid.

Table 4 :
Test Results of Research and Development Effort Validity and Company Size (Control Variable) Source: Processed data Based on table 4, it is known that the total correlation value in the variables Research and Development Effort and Company Size (Control Variable) is between 0.483 to 0.723 exceeding the r value of table = 0.195, it can be said that all statements in the variables Research and Development Effort and Company Size (Control Variable) are valid.

Table 5 :
Company Innovation Validity Test Results (Y)Based on table 5, it is known that the total correlation value in the Company Innovation variable (Y) is between 0.562 to 0.800 exceeding the table r value = 0.195, so it can be said that all statements in the company innovation variable (Y) are valid.

Table 6 :
Reliability Test Results

Table 7 :
One-Sample Kolmogorov-Smirnov TestBased on the results of the normality test above, the significance value of the K-S Test in the Kolmogorov-Smirnov regression model is 0.74 with a significance of 0.181.Based on the test results, it can be said that the regression model has met the normality requirements because the significance values are 0.181 > 0.05.

Table 8 :
Multicollinearity Test Results Using Tolerance and VIF ValuesLooking at the results from the table above, it can be seen that the tolerance value produced for the company size variable (Size) is 0.967, tax planning (TRR) is 0.950, and deferred tax expense (CPM) is 0.939.And each VIF value shows that the variable company size (Size) 1.034, tax planning (TRR) 1.053, and deferred tax expense (BPT) 1.064.It can be concluded that all independent variables in the regression model do not exist multicanonicity and are suitable for use in this study.

Table 9 :
Heteroscedasticity Test Results

Table 10 :
Multiple Linear Regression Test Results

Table 11 :
Test Results t Statistical Test ResultsIn this study, researchers used a one-way hypothesis with a value of 0.05.Thus the predicted value of the hypothesis is 0.05 : 2 = 0.025.Then the results of the t test can be explained as follows: (1) The environmental management accounting variable (X1) has a calculated t of 4.125 greater than the table t of 1.982 with a significance value of 0.000 or less than 0.05 (α= 5%) has a significant and positive effect so that hypothesis one (H1) is accepted, then environmental management accounting has a positive effect on company innovation (product innovation and process innovation); (2) The strategy variable (X2) has a calculated t of 3.247 greater than the table t of 1.984 with a significance value of 0.000 or less than 0.05 (α= 5%) has a significant and positive effect so that hypothesis one (H2) is accepted, then the strategy has a positive relationship to company innovation (product innovation and process innovation)

Table 13 :
Coefficient of Determination Test Results