The Relationship Between the Environmental Impacts of Corporate Activities and Economic Development Indicators in Desert and Gulf Regions of the Country

Abstract

The present study aims to explore the relationship between outputs in the environmental management accounting system of companies and economic development indicators in the desert and Gulf regions of the country. This research is classified as applied research and, in terms of methodology, is descriptive and exploratory, conducted in both qualitative and quantitative phases. In the first phase (qualitative), the study was exploratory in nature, using qualitative data. In the second phase (quantitative), it was explanatory with regard to its objective, applied in terms of its results, and utilized quantitative data. The statistical population consisted of senior managers, middle managers within relevant domains, university professors, and informed economic actors. The research was conducted during 2021–2023. In the qualitative section, data were analyzed and scrutinized. The outcome of this process was six main components forming a paradigmatic model of economic growth based on management accounting and environmental accounting indicators in desert and Gulf regions. Subsequently, the subcategories associated with each main component were explained separately. In the quantitative section, a survey was conducted using a sample of 415 participants, from which 384 complete and error-free questionnaires were selected. In addition to descriptive statistics, findings from structural equation modeling (SEM) demonstrated the final model and the extent to which it could be generalized. Interviews were conducted with various individuals related to the research topic. Among the 16 interviewees, 4 were women, and 12 were men, with service experience ranging from 10 to 21 years in the target population. The findings indicated that causal conditions significantly influenced the central phenomenon, which in turn affected strategies. Similarly, intervening and contextual conditions had a meaningful impact on strategies, and strategies significantly influenced outcomes. Additionally, a significant relationship was found between the environmental impacts of corporate activities and economic development indicators in both the desert and Gulf regions. The environmental impacts of corporate activities on economic development indicators were more intense in the Gulf regions compared to the desert regions. The application of growth-oriented environmental management accounting techniques in companies can mitigate the adverse environmental impacts of corporate activities on economic development indicators. However, these techniques do not exhibit differing effects on the relationship between environmental impacts and economic development indicators across the two regions.