Revenue Diversification, Capital Budgeting Practices and Financial Sustainability: The Moderating Role of Sustainability Audits

Marwa Nyahende Kesanta (Department of Economics and Statistics, Moshi Co-operative University, Kilimanjaro, United Republic of Tanzania)
Victoria Makuya (Department of Business Administration and Management, University of Dodoma, Dodoma, United Republic of Tanzania)
Athuman Makona (Department of Business Administration and Management, University of Dodoma, Dodoma, United Republic of Tanzania)

SEISENSE Journal of Management
Vol. 9 No. 1 (2026): SEISENSE Journal of Management

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.