Unlocking environmental performance through digital transformation the mediating power of environmental management accounting

Abstract

Amid increasing globalization and pressure for sustainable development, digital transformation (DT) has emerged as a strategic enabler for enhancing both economic and environmental outcomes. This study investigates the effect of DT on firms’ environmental performance (EP), with a particular focus on the mediating role of environmental management accounting (EMA) within the context of Vietnamese manufacturing enterprises. Drawing on contingency theory, accounting information systems (AIS) theory, and the natural resource-based view (NRBV), the research model is empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on data from 250 firms. The results reveal that DT not only has a direct positive impact on EP but also an indirect one via EMA. EMA serves as a critical intermediary that transforms digital data into actionable accounting information, thereby enhancing transparency, analytical capacity, and environmentally responsible decision-making. This study enriches the theoretical understanding of how digital technologies influence EP and offers managerial and policy insights for integrating DT with green management strategies in the context of emerging economies undergoing structural transformation.