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

Purpose This 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/approach Drawing 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). Findings The 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/value While 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.