Revenue Diversification Capability and Financial Sustainability of Culinary MSMEs: The Mediating Role of Income Stability
DOI:
https://doi.org/10.36636/dialektika.v11i1.9171Keywords:
Revenue Diversification Capability, Income Stability, Financial Sustainability, Culinary MSMEsAbstract
This study aims to examine the effect of revenue diversification capability on the financial sustainability of culinary micro, small, and medium enterprises (MSMEs), with income stability as a mediating variable. Data were collected through a survey of 150 culinary MSMEs in Rembang Regency, Central Java, Indonesia, using a structured questionnaire. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with a bootstrapping approach to test the proposed relationships. The results indicate that revenue diversification capability has a positive and significant effect on both income stability and financial sustainability. Income stability also significantly influences financial sustainability and partially mediates the relationship between diversification capability and sustainability. These findings suggest that diversification enhances financial sustainability primarily by stabilizing income streams, providing practical implications for MSMEs to develop strategies that ensure more predictable and sustainable income.
References
Adem, M. (2022). Impact of Income Diversification on Bank Stability: A Cross-Country Analysis. Asian Journal of Accounting Research, 8(2), 133–144. https://doi.org/10.1108/AJAR-03-2022-0093 DOI: https://doi.org/10.1108/AJAR-03-2022-0093
Alhammadi, S. (2025). Financial Bootstrapping: A Case of Women Entrepreneurs in The Digital Economy Context. International Journal of Financial Studies, 13(1), 1–21. https://doi.org/10.3390/ijfs13010041 DOI: https://doi.org/10.3390/ijfs13010041
Alifudin, M., Mulyati, H., & Mahfudz, N. (2024). The Effect of Digital Technology Adoption on Industry 4.0 Readiness and Business Performance of Culinary MSMEs in Bogor Regency. Jurnal Manajemen dan Organisasi, 15(3), 255–267. https://doi.org/10.29244/jmo.v15i3.56723 DOI: https://doi.org/10.29244/jmo.v15i3.56723
Aljuboori, Z. M., Singh, H., Haddad, H., Al-Ramahi, N. M., & Ali, M. A. (2022). Intellectual Capital and Firm Performance: The Mediating Role of Innovation Capability in Malaysian Manufacturing SMEs. Sustainability, 14(1), 154. https://doi.org/10.3390/su14010154 DOI: https://doi.org/10.3390/su14010154
Barney, J. B., Ketchen, D. J., & Wright, M. (2021). The Future of Resource-Based Theory: Revitalization or Decline? Journal of Management, 47(7), 1791–1805. https://doi.org/10.1177/0149206321992057
Brixiová, Z., Kangoye, T., & Yogo, T. U. (2020). Access to Finance Among Small and Medium-Sized Enterprises and Job Creation in Africa. Structural Change and Economic Dynamics, 55, 177–189. https://doi.org/10.1016/j.strueco.2020.08.008 DOI: https://doi.org/10.1016/j.strueco.2020.08.008
Dayuni. (2024). Entrepreneurial Resilience of Indonesian MSMEs During Global Economic Uncertainty. Journal of Management, Economics, and Finance, 2(3), 116–124. https://doi.org/10.46799/jmef.v2i3.170 DOI: https://doi.org/10.46799/jmef.v2i3.170
Fitriasari, F. (2020). How Do Small and Medium Enterprises Survive the COVID-19 Outbreak? Jurnal Ilmu Keuangan dan Perbankan, 5(2), 53–62. https://doi.org/10.22219/jiko.v5i02.11838 DOI: https://doi.org/10.22219/jiko.v5i3.11838
Fitzsimons, M., Hogan, T., & Hayden, M. T. (2025). Tying the knot: Linking bootstrapping and Working Capital Management in Established Enterprises. Journal of Applied Accounting Research, 26(6), 183–204. https://doi.org/10.1108/JAAR-03-2023-0078 DOI: https://doi.org/10.1108/JAAR-03-2023-0078
Githaiga, P. N. (2022). Revenue Diversification and Financial Sustainability of Microfinance Institutions. Asian Journal of Accounting Research, 7(1), 31–43. https://doi.org/10.1108/AJAR-11-2020-0122 DOI: https://doi.org/10.1108/AJAR-11-2020-0122
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage Publications. DOI: https://doi.org/10.1007/978-3-030-80519-7
Iastremska, O., Bielikova, N., Kozlova, I., & Herashchenko, I. (2024). Strategic Management of Innovative Development of Enterprises According to The Experience Economy Model: A review. Futurity Economics & Law, 4(3), 158–176. https://doi.org/10.57125/FEL.2024.09.25.10 DOI: https://doi.org/10.57125/FEL.2024.09.25.10
Iliyas, M., & Barca, M. (2025). A Chronological Review of Resource-Based Theory and Future Research Directions. Journal of Management World, 4, 41–53. https://doi.org/10.53935/jomw.v2024i4.1153 DOI: https://doi.org/10.53935/jomw.v2024i4.1153
Kraus, S., Clauss, T., Breier, M., Gast, J., & Zardini, A. (2020). The Economics of COVID-19: Initial Empirical Evidence on How Family Firms Cope With The Crisis. International Journal of Entrepreneurial Behavior & Research, 26(5), 1067–1092. https://doi.org/10.1108/IJEBR-04-2020-0214 DOI: https://doi.org/10.1108/IJEBR-04-2020-0214
Nastiti, P. K. Y., Damayanti, T. W., & Rita, M. R. (2025). Role of Business Sustainability, Patriotism of Business Actors, and Digital Transformation in Increasing MSME Tax Compliance. Cogent Business & Management, 12(1), 1–18. https://doi.org/10.1080/23311975.2025.2459328 DOI: https://doi.org/10.1080/23311975.2025.2459328
OECD. (2020). Financing SMEs and Entrepreneurs 2020. OECD Publishing. https://doi.org/10.1787/061fe03d-en DOI: https://doi.org/10.1787/061fe03d-en
Rasjid, D. R. A. (2022). The Influence of Financial Literacy on MSME Performance and Sustainability During COVID-19. Journal of Applied Managerial Accounting, 6(1), 132–145. https://doi.org/10.30871/jama.v6i1.3600 DOI: https://doi.org/10.30871/jama.v6i1.3600
Sen, S., Savitskie, K., Mahto, R. V., Kumar, S., & Khanin, D. (2022). Strategic Flexibility in Small Firms. Journal of Strategic Marketing, 1–18. https://doi.org/10.1080/0965254X.2022.2036223 DOI: https://doi.org/10.1080/0965254X.2022.2036223
Shaferi, I. (2025). Increasing MSME Income Through Industrial Networking and Demand Expansion. Multidisciplinary Reviews, 1–8. https://doi.org/10.31893/multirev.2026322 DOI: https://doi.org/10.31893/multirev.2026322
Suriani, S., Nur, I., Fatmawati, & Baharuddin, S. M. (2024). Economic Growth and Financial Management for SMEs: Perspectives on Sustainability. Atestasi: Jurnal Ilmiah Akuntansi, 7(1), 704–728. https://doi.org/10.57178/atestasi.v7i1.909 DOI: https://doi.org/10.57178/atestasi.v7i1.909
Thi, N. N. (2022). SMEs Survival in Emerging Economies: Evidence from Vietnam. Heliyon, 8(11), e11387. https://doi.org/10.1016/j.heliyon.2022.e11387 DOI: https://doi.org/10.1016/j.heliyon.2022.e11387
Umar, K., & Gorondutse, A. H. (2025). Exploring Revenue Diversification Strategies for Financial Sustainability. Journal of Accounting and Financial Management, 11(4), 203–222. https://doi.org/10.56201/jafm.vol.11.no4.2025.pg203.222
Wang, Y. (2020). Marketing Innovations During a Global Crisis: A Study of Firms’ Response to COVID-19. Journal of Business Research, 116, 214–220. https://doi.org/10.1016/j.jbusres.2020.05.029 DOI: https://doi.org/10.1016/j.jbusres.2020.05.029
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Nur Listiani, Siti Alliyah, Rita Meiriyanti
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
