Impact of Sustainable and Digital Management Accounting Practices on Organizational Performance of Commercial Banks in Developing Countries

Abstract

The present study investigates how management accounting practices such as sustainable and digital management accounting influence the organizational performance of commercial banks in Nepal, while Digital Capability is used as a moderating variable. The study is based on Resource-Based View, Contingency Theory, and Institutional Theory. It examines the effect of Sustainability Management Accounting (SMA), ESG Performance Measurement, Green Banking Accounting Practices (GBAP), and AI-Driven Accounting Decision Support (AID) on organizational performance. A quantitative research design was followed, and primary data were collected from 175 respondents, including accounting and finance professionals from 20 commercial banks in Nepal. Descriptive statistics, correlation analysis, and hierarchical moderated regression analysis were used to analyze the data. The study results show that the variables SMA, ESG Performance Measurement, GBAP, and AID have significant positive effects on organizational performance. The most positive impact that can be noted is the variable Sustainability Management Accounting. The findings also show that Digital Capability makes a significant contribution to the relationships between SMA, ESG, AID, and organizational performance. The moderating influence of Digital Capability on the relationship between GBAP and organizational performance is not statistically significant, however. The study contributes to the growing body of research on sustainable and digital management accounting, with an empirical perspective of the Nepalese banking sector. The results indicate that the combination of investments in sustainability-oriented accounting systems and digital capabilities has the potential to significantly enhance the financial, operational, and strategic performance in commercial banks.