In your findings, you said that the direct effect of environmental management accounting (EMA) on firm performance become insignificant when environmental innovation is included as mediator. But doesn’t this raise a question that the actual driver of performance is innovation itself, not EMA? So, how can you be sure the impact is from EMA and not because firms who are more innovative anyway happen to also implement EMA? It feels like there might be some endogeneity or omitted variable bias here, no?
