The intersection of corporate governance and sustainable livelihoods remains underexplored in African business literature, particularly in post-conflict economies. This gap is significant for microfinance and enterprise development, where governance structures directly impact community resilience and long-term viability. This study aims to analyse the causal mechanisms through which formal corporate governance practices influence sustainable livelihood outcomes in micro and small enterprises. It seeks to identify the specific governance components most critical for livelihood sustainability. A sequential explanatory mixed methods design was employed. Quantitative analysis of longitudinal enterprise data established correlations between governance indicators and livelihood metrics. This was followed by in-depth qualitative case studies and stakeholder interviews to explicate the underlying processes and contextual factors. Quantitatively, enterprises with transparent audit committees demonstrated a 34% higher asset diversification index. Qualitatively, the integration of community representatives onto boards emerged as a pivotal theme, fostering trust and aligning business operations with local livelihood strategies. Formal governance mechanisms, when adapted to include local stakeholder voices, are not merely compliance tools but vital enablers of sustainable livelihood creation. This synergy is essential for enterprise resilience in developing economies. Policymakers and microfinance institutions should develop hybrid governance frameworks that mandate both financial transparency and structured community representation. Capacity building for board members on livelihood-sensitive decision-making is also crucial. corporate governance, sustainable livelihoods, mixed methods, microfinance, enterprise development, Mozambique This paper provides a novel integrated framework that models the recursive relationship between specific governance attributes and the five capital assets of the Sustainable Livelihoods Approach, offering a new diagnostic tool for investors and development agencies.
Muchanga et al. (Tue,) studied this question.