Competitive advantage exists when a

Competitive advantage exists when an organization is able to produce a product at a lower cost compared to its
competitors and by delivering the same benefit or produce a product that offer superior benefit relative to its
competing product (Wang et al., 2011). This can be achieved when existing or potential competitors do not
simultaneously implement an organization value creating strategy (O’shannassy, 2008). Organizations' value
creating strategy is where organizations are able to create value for their customers that exceed the costs of
creating it, such as offering high quality products at low costs (O’shannassy, 2008). Barney (1991) stated that
competitive advantage can be achieved by exploiting their own strategies and overcoming its internal
weaknesses as well as responding positively to externalities. Having an advantage over competitors would surely
help an organization to generate strong financial performance (O’shannassy, 2008).
Implementation of good environmental management accounting practices will also lead to competitive
advantage (Leonidou et al., 2013; Lopez-Gamero, Molina-Azorın, and Claver-Cortes, 2009). This is because
most organizations that implement effective environmental management accounting practices are able to gain
cost saving advantage as consequent of improvement in process efficiency, reduced usage of raw materials and
wastage disposal, and low cost of production (Lopez-Gamero et al., 2009). Besides that, implementation of
environmental management accounting practices also give advantage for organizations to differentiate their
products or services by producing eco-friendly products and providing their customers with a high quality
product (Wang et al., 2011). Apart from that, due to the infancy of environmental management and the increase