Sustainable accounting in the digital age: Integrating technology for a greener future

In an era of rapid technological advancement and escalating environmental concerns, sustainable accounting has become a critical approach for integrating ecological responsibility into financial practices. This study examines the intersection of digital technology and sustainable accounting by investigating how digital accounting systems (DAS) influence sustainability performance in small and medium-sized enterprises (SMEs) in Yemen. The research specifically examines the direct influence of digital accounting systems (DAS) on operational efficiency and their subsequent effect on organisational sustainability performance while evaluating the moderating role of organisational digital literacy (ODL). Data were gathered from 248 professionals engaged in accounting, finance, and sustainability-related positions within Yemeni SMEs. The proposed hypotheses were tested using partial least squares structural equation modelling (PLS-SEM), a method that helps analyse complex relationships and make predictions in research. The results indicate that DAS improves operational efficiency, which, in turn, enhances sustainability performance. However, the moderating role of ODL is more nuanced than anticipated. Contrary to expectations, higher levels of ODL do not significantly strengthen either the direct relationship between DAS and operational efficiency or the indirect relationship between DAS and sustainability performance. These results suggest that system usability or external digital support mechanisms may reduce the dependency on advanced internal digital literacy. The study enhances theoretical understanding of digital capability frameworks in sustainability research, illustrating that digital literacy may not consistently serve as a reinforcing contingency factor in technology–performance relationships in developing-economy contexts. In practice, the findings highlight the importance of strategic investment in digital infrastructure and targeted capacity-building initiatives to foster sustainability-oriented organisational practices in the digital era.