<![CDATA[Purpose — Environmental Cost Accounting (ECA) is an important instrument for balancing environmental costs with the benefits that justify them by managing environmental costs, maintaining the company's position, and maximizing its value by enhancing Green Competitive Advantages (GCA). This article examines the relationship between ECA and GCA, the mediating role of Financial Performance (FP), and the moderating role of Environmental Strategic Orientation (ESO), grounded in the Natural Resource-Based View, Stakeholder Theory, Legitimacy Theory, and Information Inductance Theory. Findings — The conceptual framework proposes that ECA shapes GCA. FP could conceptually mediate the relationship between ECA and GCA. The mediation effect becomes stronger when moderated by ESO. These findings enrich the current body of knowledge on GCA adoption by explicating the theoretical, practical, and methodological aspects of such conceptual research. Originality/value — This paper presented a conceptual argument and proposed that FP could mediate the connection between ECA and GCA. The mediation effect becomes stronger when moderated by ESO. This implies that while ECA is a significant predictor of GCA, FP illuminates the relationship between ECA and GCA. This stronger illumination is evident through ESO moderation. To extend this finding, future research could collect and analyze relevant data to examine these relationships and enrich the extant body of knowledge. Paper type — Conceptual Framework]]>
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