Green digital accounting and sustainable entrepreneurship in emerging economies: impacts on financial sustainability and performance

As entrepreneurial ventures in emerging economies face growing pressures to remain competitive while adopting environmentally responsible practices, the integration of digital technologies into sustainability-oriented accounting has become increasingly essential. In this context, Green Digital Accounting (GDA) offers a promising pathway for improving both environmental accountability and financial outcomes. This study investigates the influence of GDA on financial sustainability and business performance among entrepreneurial ventures. Employing quantitative research design and survey data, structural equation modelling (SEM) was used to assess the relationships among GDA, financial sustainability, business performance, and Digital Financial Literacy (DFL). The findings demonstrate that GDA significantly enhances financial sustainability and business performance, with financial sustainability playing a mediating role in transforming environmentally conscious accounting practices into improved organisational outcomes. Furthermore, DFL positively moderates the relationship between GDA and business performance, indicating that entrepreneurs with stronger digital financial skills are better able to leverage GDA for strategic and financial gains. The study provides valuable insights for policymakers, entrepreneurs, and firms by emphasising the need for DFL training and the adoption of environmentally integrated accounting practices to support sustainable entrepreneurial development. This research is among the first to empirically establish the strategic role of GDA in promoting sustainable entrepreneurship within emerging economies.