Interaction between agricultural extension services and environmental management accounting : the role of farmer value orientations

Abstract

The present study aimed to examine the value orientations of farmers in Malaysia and the role that these orientations play in facilitating increased environmental management accounting under the presence of efficient and effective Agricultural Extension services. The researcher used SEM-PLS technique to develop a model showing how value orientations of farmers in Malaysia mediates between Agricultural Extension services and environmental management accounting. The research model was more validated by use of several tests like KMO, Bartletts Sphericity test and the Cronbach Alpha tests. Furthermore, model fitness was also tested by use of confirmatory factor analysis and all the results were satisfactory. Findings showed that there was a full mediation of various constructs of Farmers Value Orientations in this model. The direct relationship between Agricultural Extension services and environmental management accounting was significant and positive and the mediation was also found to be positive. These findings imply that the farmers values in Malaysia are supportive for the use of modern technologies and services that can allow them to improve the output of the agricultural sector. The understanding of the importance of studying the relationship between agricultural extension services and outcomes like increased accounting systems has been emphasized in the present study. The findings of this study along with its limitations have paved the way for future research the field of environmental management accounting in agricultural sector. The researcher has highlighted the limitations of the study so that future researchers can eradicate them in their studies.