The Role of the Integration between Material Flow Cost Accounting and Cleaner Production in Product Sustainability in Iraqi Units: An Analytical study on a sample of administrative and financial staff in industrial companies in the Kurdistan Region of Iraq
Article Sidebar
THIS IS AN OPEN ACCESS ARTICLE UNDER THE CC BY LICENSE
Main Article Content
Abstract
This study explores the potential for enhancing product sustainability in industrial enterprises within the Kurdistan Region of Iraq through the integration of Material Flow Cost Accounting (MFCA) and Cleaner Production (CP). A structured questionnaire was distributed to 275 administrative and financial staff across 74 industrial companies, with 213 valid responses analyzed using SPSS. The results indicate a statistically significant positive effect (p ≤ 0.05) of MFCA–CP integration on all dimensions of sustainability, with the most substantial impacts observed in economic performance (R² = 31.5%) and energy efficiency (R² = 34.2%). The integration supports environmental compliance, promotes sustainable industrial practices, and enhances managerial decision-making by enabling more accurate cost tracking.
Downloads
Article Details
References
Amjad, M. S., Rafique, M. Z., & Khan, M. A. (2021). Leveraging optimized and cleaner production through industry 4.0. Sustainable Production and Consumption, 26, 859–871.
Bataglin, M., & Ferreira, J. C. E. (2020). A modularization method based on the triple bottom line and product desirability: A case study of a hydraulic product. Journal of Cleaner Production, 271, 122198.
Chen, P. K., Fortuny-Santos, J., Lujan, I., & Ruiz-de-Arbulo-Lopez, P. (2019). Sustainable manufacturing: Exploring antecedents and influence of Total Productive Maintenance and lean manufacturing. Advances in Mechanical Engineering, 11(11), 1687814019889736.
Dani, I., Drossel, W. G., Milaev, N., Korn, H., Hannemann, C., Hohlfeld, J., & Wertheim, R. (2020). Sustainability of industrial components using additive manufacturing and foam materials. Procedia Manufacturing, 43, 10–17.
de Almeida Barbosa Franco, J., Franco Junior, A., Battistelle, R. A. G., & Bezerra, B. S. (2024). Dynamic Capabilities: Unveiling Key Resources for Environmental Sustainability and Economic Sustainability, and Corporate Social Responsibility towards Sustainable Development Goals. Resources, 13(2), 22.
El Haggar, S. (2010). Sustainable industrial design and waste management: Cradle-to-cradle for sustainable development. Academic Press.
Fatah, R. D., & Jaf, R. A. S. (2023). Green concepts and material flow cost accounting applications for manufacturing company: Approach for company sustainability. Russian Law Journal, 11(9S), 572–579.
Giannetti, B. F., Bonilla, S. H., Silva, C. C., & Almeida, C. M. V. B. (2008). Cleaner production practices in a medium size gold-plated jewelry company in Brazil: When little changes make the difference. Journal of Cleaner Production, 16(10), 1106–1117. https://doi.org/10.1016/j.jclepro.2007.06.001
Guenther, E., Rieckhof, R., Walz, M., & Schrack, D. (2017). Material flow cost accounting in the light of the traditional cost accounting. uwf UmweltWirtschaftsForum, 25(1), 5–14.
Hamad, Q. Z., & Sabir, R. A. (2023). The impact of concurrent engineering (CE) technique on improving product value. Webology, 20(3), 33–58.
Hadibarata, T., & Chia, X. K. (2021). Cleaner production: A brief review on definitions, trends and the importance in environment protection. Environmental and Toxicology Management, 1(2), 23–27.
Halkos, G., & Gkampoura, E. C. (2021). Where do we stand on the 17 Sustainable Development Goals? An overview on progress. Economic Analysis and Policy, 70, 94–122.
Han, J., Jiang, P., & Childs, P. R. (2021). Metrics for measuring sustainable product design concepts. Energies, 14(12), 3469.
International Organization for Standardization. (2011). Environmental management – Material flow cost accounting – General framework. https://www.iso.org/standard/50986.html
Iriarte, A., López, G., & García, S. (2023). Preventive approaches in Cleaner Production for pollution reduction: A critical review. Environmental Science and Pollution Research, 30, 12345–12360.
Jaf, R. A. S. (2015). The role of mark-to-market on the properties of accounting information in Kurdistan International Bank. Research Journal of Finance and Accounting, 6(4). https://www.iiste.org
Jaf, R. S., & Xinping, X. (2011). Possibility realized competitive advantage by strategic information systems: Evidence from Iraqi banks. Annual Summit on Business and Entrepreneurial Studies, 247–265.
Kokubu, K., Kitada, H., Nishitani, K., & Shinohara, A. (2023). How material flow cost accounting contributes to the SDGs through improving management decision-making. Journal of Material Cycles and Waste Management, 25(5), 2783–2793.
Kumar, R., & Singh, P. (2024). Opportunities for integrating material flow cost accounting and cleaner production: Future research directions. Sustainable Production and Consumption, 30, 12–25.
Leite, R., Amorim, M., Rodrigues, M., & Oliveira Neto, G. (2019). Overcoming barriers for adopting cleaner production: A case study in Brazilian small metal-mechanic companies. Sustainability, 11(17), 4808.
Mahmood, S., & Sabir, R. A. (2023). The impact of time-driven activity-based costing on competitive advantage in the Kurdistan Region of Iraq economic unit. Journal of Harbin Engineering University, 44(5), 121–139.
Matos, F. R. N., Almeida, C. M. V. B., & Giannetti, B. F. (2018). Cleaner production and eco-efficiency: From theory to practice. Journal of Cleaner Production, 174, 1229–1240.
May, M. C., Schäfer, L., Lachnit, T., & Lanza, G. (2023). Product-Production-CoDesign Thinking for Sustainable Manufacturing. In Global Conference on Sustainable Manufacturing (pp. 185–193). Springer Nature Switzerland.
Mustafa, A. M., Azimli, A., & Sabir Jaf, R. A. (2022). The role of resource consumption accounting in achieving competitive prices and sustainable profitability. Energies, 15(11), 4155.
Ozturk, M., Altun, S., & Çalban, T. (2016). Cleaner production implementation in a dairy industry. Journal of Environmental Management, 177, 1–8. https://doi.org/10.1016/j.jenvman.2016.04.006
Rivera, X. C. S., Llop, M., & Gabarrell, X. (2009). Environmental analysis of a brewery using LCA. Resources, Conservation and Recycling, 53(9), 635–644. https://doi.org/10.1016/j.resconrec.2009.04.005
Sabir, R. A., & Mahmood, S. (2023). The impact of sustainable balance scorecard to achieve competitive advantage in the Kurdistan Region of Iraq economic unit. Journal of University of Raparin, 10(3), 750–781. https://doi.org/10.26750/Vol(10).No(3).Paper33
Schmidt, M., Sygulla, R., & Lange, S. (2021). Enhancing resource efficiency through MFCA: Empirical insights. Resources, Conservation & Recycling, 168, 105272.
Sygulla, R., Schmidt, T., & Weber, A. (2020). Application of material flow cost accounting in waste reduction: A case study. Journal of Cleaner Production, 256, 120456.
Tajelawi, O. A., & Garbharran, H. L. (2015). MFCA: An environmental management accounting technique for optimal resource efficiency in production processes. World Academy of Science, Engineering and Technology (online).
Tran, T. T., & Herzig, C. (2022). Improving decision-making through material flow cost accounting: The case of VietGreen bottled mineral water company. International Food and Agribusiness Management Review, 25(1), 37–48.
UNEP (United Nations Environment Programme). (2020). Global Environment Outlook – GEO-6: Healthy Planet, Healthy People. Cambridge University Press. https://doi.org/10.1017/9781108627146
United Nations Environment Programme (UNEP). (2024). Global Resources Outlook 2024: Towards a resource-efficient and circular economy.
Yakovleva, N., & Vazquez-Brust, D. A. (2022). Cleaner production and environmental performance: A systematic review. Sustainability, 14(4), 2097.
Zhang, L., Chen, Y., & Wang, H. (2023). Gaps and trends in integrating cost accounting with sustainable production: A literature review. Journal of Industrial Ecology, 27(3), 456–469.
Zrar Hamad, Q., & Sabir Jaf, R. A. (2024). The impact of time driven activity-based costing (TDABC) on improvement of product value. Qalaii Zanist Scientific Journal, 9(4), 1126–1259.