Abstract: Private Technical and Vocational Education and Training (TVET) providers face structural vulnerabilities due to tuition dependency. This empirical study investigates the impact of revenue diversification on long-term institutional financial sustainability. Using a explanatory structural equation modeling framework, we examine three independent variables: Commercial Production Units (X 1), Consultancy Services (X2), and Corporate Training Contracts (X3). Operational Resource Allocation Efficiency (M) is modeled as a mediator, while National Regulatory Policy (W) is analyzed as a moderator. Data were collected from a stratified sample of 340 private TVET institutions using a 5-point Likert scale questionnaire and audited institutional archives.
Econometric diagnostics confirmed data validity through Cronbach’s alpha (alpha > 0.82), Heterotrait-Monotrait ratio (HTMT < 0.85), and Variance Inflation Factors (VIF < 2.41). Structural Equation Modeling (SEM) and ordinary least squares regression indicate that while all three diversification streams significantly enhance long-term sustainability (Y), their direct effects are substantially amplified when channeled through resource allocation efficiency (M). Furthermore, multi-group interaction analysis shows that favorable national regulatory policies significantly moderate the path from diversification strategies to operational efficiency. The paper concludes with actionable frameworks for TVET administrators to structurally hedge financial risks without compromising educational quality.
Keywords: Financial Diversification, Institutional Sustainability, Private TVET, Resource Dependency Theory, Structural Equation Modeling.
Title: FINANCIAL DIVERSIFICATION AND PRIVATE TVET INSTITUTIONAL SUSTAINABILITY
Author: Juma Kangutu
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 14, Issue 1, April 2026 - September 2026
Page No: 822-827
Research Publish Journals
Website: www.researchpublish.com
Published Date: 25-September-2026
