Linking social capital and sustainable livelihood: the mediating effect of financial literacy and moderating role of market access

Purpose This study examines how social capital influence sustainable livelihood outcomes among rural women entrepreneurs, emphasizing the mediating role of financial literacy and the moderating effect of market access. Design/methodology/approach Grounded in social capital theory and the sustainable livelihood framework, the research employs a cross-sectional survey of 412 rural women engaged in entrepreneurial and livelihood activities. Data are analysed using partial least squares structural equation modelling (PLS-SEM) with SmartPLS. Findings The results highlight that social capital enhances access to resources, strengthens trust, and facilitates capacity-building through improved financial literacy, which in turn supports livelihood sustainability. Moreover, the effect of financial literacy on livelihood outcomes is strengthened under high levels of market access, confirming its moderating role. Originality/value This paper introduces a moderated-mediated framework linking social capital, financial literacy, and market access to sustainable livelihood outcomes. It moves beyond existing studies by combining cognitive (financial literacy) and structural (market access) mechanisms within a single analytical model grounded in the capability approach and social capital theory. Empirical evidence from Bihar, India, offers fresh insights into the South Asian context, advancing theoretical understanding of how social resources translate into sustainable livelihood for rural women.