Abstract:
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.
