Siti Rohmah

Type of the article: Research Article

Abstract
This study examines how medium-sized enterprises improve financial performance through environmental awareness and digital financial literacy, with accounting information-based decision making as a mediating mechanism. The study focuses on medium-sized enterprises operating in East Kalimantan, particularly in the cities of Samarinda, Balikpapan, and Bontang, Indonesia, as this region represents a rapidly developing economic area with increasing environmental and digitalization challenges. Data were collected from 244 business owners and managers using stratified random sampling from June 2025 to September 2025. Partial Least Squares Structural Equation Modeling (PLS-SEM) is employed for analysis. The empirical results reveal that digital financial literacy has a stronger influence on financial performance than environmental awareness, emphasizing the dominant role of digital capability in driving firm outcomes. Furthermore, accounting information-based decision making significantly mediates these relationships, confirming its role as a crucial mechanism through which internal capabilities are translated into improved financial outcomes. The model also demonstrates strong explanatory and predictive power, indicating that the proposed framework effectively captures the key determinants of financial performance. The findings show that environmental awareness and digital financial literacy significantly enhance financial performance both directly and indirectly through accounting information-based decision making. The mediating role of decision making emerges as a key mechanism linking internal capabilities to firm performance, while government support does not significantly moderate these relationships. These results highlight the importance of internal behavioral and cognitive capabilities in strengthening the financial performance of medium-sized enterprises.