The impact of digital transformation in management accounting on business performance: Evidence from an emerging market

Digital transformation has become a strategic priority for modern enterprises; however, the organizational mechanisms through which it enhances business performance remain insufficiently understood. This study investigates how digital transformation in management accounting improves business performance by examining the mediating roles of management accounting information quality and management effectiveness. Data were collected from 312 enterprises in Vietnam and analyzed using Cronbach’s alpha, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results indicate that digital transformation has a strong positive effect on management accounting information quality (β = 0.816), which subsequently strengthens management effectiveness and enhances business performance. In addition, the significant direct and indirect effects provide evidence of partial mediation, demonstrating that digital transformation creates organizational value through multiple complementary mechanisms. The originality of this study lies in explaining the organizational mechanism through which digital transformation improves business performance by identifying management accounting information quality as the pivotal capability linking digital transformation to management effectiveness and organizational performance. The findings provide practical implications for managers and policymakers by suggesting that the success of digital transformation depends not only on technology adoption but also on the organization’s ability to transform digital capabilities into high-quality management accounting information that supports effective managerial decision-making and sustainable business performance.