The impact of migration on intellectual capital: exploring the mediating role of digitalization, and institutional quality

Abstract

This study examines the impact of migration on intellectual capital through the mediating role of digitalization and institutional quality. Drawing from human capital theory, this study developed a test model based on a sample of 47 Sub-Saharan African regions: 18 from South-Central and 29 from West-East regions, with 1,081 observations from 2000-2022. Using PLS-SEM analysis, the results revealed that migration has a significant and positive impact on intellectual capital, digitalization, and institutional quality in the South-Central regions. However, the relationship between migration and intellectual capital was found to be insignificant in the West-East regions but significantly positive with digitalization and intellectual capital. Overall sample findings reveal a significant and positive influence of migration on digitalization, institutional quality, and intellectual capital. The results also show a significant positive mediating effect of digitalization and institutional quality on migration and intellectual capital for all regions. Moreover, the multigroup analysis results showed that the impact of migration on the outcome variables was higher in the south-central region in comparison to West-East region. Additionally, the multigroup analysis revealed significant differences when comparing the effect of migration on intellectual capital through digitalization and institutional quality, with a stronger impact in the West-East regions.