http://repository.mocu.ac.tz/xmlui/handle/123456789/1 Sun, 24 May 2026 18:57:59 GMT 2026-05-24T18:57:59Z http://repository.mocu.ac.tz/xmlui/handle/123456789/2195 Revenue Diversification, Capital Budgeting Practices and Financial Sustainability Kesanta, Marwa N.; Makuya, Victoria; Makona, Athuman Purpose: This study is anchored on the Resource-Based View and Modern Portfolio theories to investigate the impact of revenue diversification (RD) and capital budgeting practices (CBP) on financial sustainability (FS), moderated by sustainability audits (SA). Design/Methodology: Data were collected from 228 managers using a cross sectional research design and a questionnaire. Data analysis were through Partial least squares structural equation modeling (PLS-SEM). Findings: Analysis reveals that RD and CBP significantly and positively drive FS, though RD demonstrates a greater effect. SA moderated positively the association between the RD and FS, but negatively on the CBP and FS linkage. Practical Implications: The study’s findings inform the management and policymakers of Savings and Credit Cooperative Organisations (SACCOS) in recognising and prioritising SA, RD, and CBP in their decision-making and planning processes to achieve financial success. They should embrace regular investment training, investment diversification, and designate a dedicated unit to manage revenue diversification and capital budgeting practices to achieve FS. Thu, 01 Jan 2026 00:00:00 GMT http://repository.mocu.ac.tz/xmlui/handle/123456789/2195 2026-01-01T00:00:00Z http://repository.mocu.ac.tz/xmlui/handle/123456789/2165 Uncovering Unobserved Heterogeneity in Digital Financial Inclusion Malombe, Hamza This study investigates how digital financial literacy (DFL) influences financial inclusion (FI) among rural Tanzanian women while addressing the critical, yet underexplored, issue of unobserved heterogeneity in behavioral finance research. It examines how individual-level differences is reflected through latent subgroups that affect the link between DFL and FI. The model includes financial confidence and financial attitude as mediators, and mobile network quality as a contextual moderator, offering an analysis of how behavioral and infrastructural enablers interact across different segments of rural women. Data were collected from 301 rural women in Tanzania’s Mbeya, Dodoma, and Kigoma regions through a cross-sectional survey using purposive sampling. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0, followed by Finite Mixture PLS (FIMIX-PLS) segmentation. This approach enabled the identification of latent segments within the population that differ significantly in their structural pathways, thus revealing hidden patterns that conventional models often obscure. While the pooled analysis confirms that DFL has a direct and positive impact on FI with financial confidence and attitude acting as significant mediators and mobile network quality as a moderator. The FIMIX-PLS uncovered three distinct behavioral segments. Segment 1 exhibited strong DFL–FI links with effective mediation and moderation; Segment 2 relied primarily on financial attitude despite moderate DFL; and Segment 3 showed constrained outcomes due to infrastructural limitations, despite adequate literacy. These findings highlight the presence of meaningful subpopulation differences in digital finance behavior. The findings emphasize the need for segment-specific interventions that go beyond one-size-fits-all models. Policymakers and practitioners should tailor financial education, confidence-building programs, and digital infrastructure investment according to the behavioral profiles of different subgroups Wed, 01 Jan 2025 00:00:00 GMT http://repository.mocu.ac.tz/xmlui/handle/123456789/2165 2025-01-01T00:00:00Z http://repository.mocu.ac.tz/xmlui/handle/123456789/2156 Beyond the bank: Malombe, Hamza H. Women in Tanzania's informal economy continue to be excluded from the formal financial sector due to a number of factors, primarily income irregularity and the inflexibility of formal financial structures. This paper explores the influence of women's income irregularities on their preference for informal financial institutions like Village Community Banks (VICOBA) and whether perceived financial product flexibility mediates this relationship. The study is based on institutional theory and is concerned with alignment between institutional design and user behaviour. A quantitative cross-sectional study design was used, which included a sample of 403 women aged 20-55 years in Tanzania from three regions: Dodoma, Mwanza, and Mbeya. Study participants were selected by multistage sampling to ensure representation across a wide range of informal economic activities, including farming, trading, and micro-entrepreneurship. Data were collected using structured questionnaires, which included three general constructs: income irregularity, perceived flexibility and preference for VICOBA over formal (formal credit) finance. SmartPLS 4.0 software was used for the analysis of Partial Least Squares Structural Equation Modelling (PLS-SEM). Analysis showed that all hypothesised relationships were statistically significant. Irregularity of income was found to be an important factor influencing women's preference for VICOBA and also determined perceptions of perceived flexibility. Perceived flexibility added another positive contribution to the preference for VICOBA. Mediational analysis supported the partial mediation of perceived flexibility in the relationship between income irregularity and preference for VICOBA, supporting complementary partial mediation. The results emphasise the role of institutional design, and especially flexibility, for the financial behaviour of women with irregular incomes. VICOBA emerges as a rational institutional choice based on the structural and cognitive needs of women in the informal economy. To better serve the financial needs of women, formal financial institutions need to reconceptualise products to reflect income irregularity and incorporate elements of flexibility. Bringing VICOBA and other women's financial institutions into the financial mainstream as legitimate business enterprises would help bridge the gap between formal finance and the economic realities of rural women. This is Research article Wed, 01 Jan 2025 00:00:00 GMT http://repository.mocu.ac.tz/xmlui/handle/123456789/2156 2025-01-01T00:00:00Z http://repository.mocu.ac.tz/xmlui/handle/123456789/2130 Examining Service Quality Dimensions and Customer Satisfaction Interplay in the Retail Banking Sector Kazungu, Isaac; Msuya, Richard I. This study assesses the relationship between service quality dimensions and customer satisfaction. Specifically, the study aimed to determine the influence of reliability, tangibility, responsiveness, service assurance, and empathy on customer satisfaction with retail banking services. A cross sectional research design was adopted. Questionnaires were used to collect data from 289 respondents, and the data were analysed using ordinal logistic regression. Findings indicate that customers are satisfied with the overall quality of services rendered by the retail banking sector. Findings further reveal that reliability, tangibility, assurance, responsiveness and empathy positively influence customer satisfaction. The findings highlight the importance of service quality dimensions in shaping customer perceptions and satisfaction in the banking sector, and identify areas for development to improve overall service delivery and the customer experience. The study's findings are particularly relevant in emerging economies, where competition is intensifying, and customer expectations are evolving. Findings suggest that Banks that prioritise these dimensions can foster stronger customer loyalty, quality service delivery, greater financial performance and sustainable growth. This study contributes to the body of knowledge by addressing a critical research gap in the Tanzanian retail banking sector, particularly regarding the relationship between service quality dimensions and customer satisfaction. Unlike previous studies that examined conventional banking services, this study emphasises the unique dynamics of retail banking, catering to a large unbanked population in the country. By providing insights into specific service quality factors, the study equips Tanzanian banks with actionable strategies to enhance customer experiences and drive financial inclusion in an evolving economic landscape. Thu, 01 Jan 2026 00:00:00 GMT http://repository.mocu.ac.tz/xmlui/handle/123456789/2130 2026-01-01T00:00:00Z