Environmental information and environmental performance among Jordanian firms: the mediating effect of environmental decision quality

Environmental Information (EI) has emerged as a crucial factor for firms in developing countries such as Jordan, where limited access to and poor integration of high-quality EI in strategic decision-making have contributed to escalating environmental challenges, including pollution and unsustainable industrial practices. In response to these issues, this research undertakes a comprehensive investigation into the impact of EI on Environmental Performance (EP), with a particular focus on the mediating role of Environmental Decision Quality (EDQ) within the Jordanian context. The research aims to examine how the integration of various types of EI, specifically Environmental Management Accounting (EMA) and Environmental Research and Development (ERD), within a unified model can enhance EP by optimizing EDQ. Grounded in Resource-Based View theory, this research emphasizes the strategic importance of EI as an internal resource. By prioritizing internal users rather than confining EI to external disclosure, the research demonstrates how effectively utilizing EI can support firms' efforts to mitigate environmental degradation in Jordan. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) for analysis, the research thoroughly explored the direct and indirect relationships among variables. The findings reveal the significant influence of EI, with both dimensions, EMA and ERD, impacting firms' EP. The research also highlights the considerable role of EDQ as a mediator between these variables. This research makes a notable contribution by broadening the understanding of EMA and ERD, demonstrating their informational value beyond just practical application and expenditure considerations. Additionally, the findings offer invaluable insights for policymakers and regulatory bodies working to promote sustainable business practices, especially in the context of developing countries.