Leveraging accounting information systems to enhance the financial impact of green product innovation: evidence from Chinese non-financial firms

Hisham Noori Hussain Al-Hashimy, Jinfang Yao and Anwar Allah Pitchay

International Journal of Productivity and Performance Management, 2026, vol. 75, issue 5, 1437-1472

Abstract: PurposeThis study investigates how accounting information systems (AIS) mediate the relationship between green product innovation (GPI) and financial performance (FP) in the context of Chinese non-financial firms. The aim is to understand whether internal digital systems enhance the economic returns of sustainability-focused innovation strategies.Design/methodology/approachDrawing on stakeholder theory and the DeLone and McLean Information Systems Success Model, the study employs partial least squares structural equation modelling (PLS-SEM) to analyse survey and secondary data from 321 listed Chinese firms. FP is measured using the following key metrics: return on assets (ROA), return on sales (ROS) and asset turnover (AT).FindingsThe results show that GPI alone does not significantly improve FPs. However, when supported by effective AIS capabilities, GPI is positively associated with ROA, ROS and AT. AIS enhances environmental cost tracking, decision-making quality and regulatory compliance, thereby acting as a partial mediator in the GPI–FP relationship.Originality/valueWhile prior studies have examined the role of digital systems in sustainability, this study focuses specifically on AIS as an enabling mechanism that translates green innovation into measurable FP. The findings contribute a systems-level perspective on how firms can leverage internal digital infrastructure to capture the value of sustainability initiatives, particularly in emerging market contexts.

Keywords: Green product innovation; Accounting information systems; Financial performance; SEM-PLS; China; ROA; ROS; Asset turnover (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-05-2025-0408

DOI: 10.1108/IJPPM-05-2025-0408

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