Human Capital Development and Technological Innovation in Kenyan Universities: The Mediating and Moderating Role of Intermediaries

Abstract

Universities are increasingly expected to translate Human Capital Development (HCD) into Technological Innovation (TI), yet limited empirical evidence exists on the mechanisms through which this relationship operates. In particular, the role of intermediary structures in linking human capital and innovation remains insufficiently examined. This study investigates Innovation Intermediaries Development (IID) as both a mediating and moderating construct in the association between HCD and TI in Kenyan universities. A cross-sectional quantitative design based on perceptual data is adopted. Data from 284 respondents across Kenyan universities are analysed using covariance-based structural equation modelling (SEM) in IBM SPSS Amos. The study tests a consolidated model incorporating direct, mediating, and moderating associations among HCD, IID, and TI. The findings indicate that HCD is positively and significantly associated with TI (β = 0.181, p = 0.019) and IID (β = 0.570, p < 0.001), while IID is also positively associated with TI (β = 0.299, p < 0.001). In addition, IID significantly mediates the association between HCD and TI (β = 0.102, p = 0.001) and moderates the relationship (β = 0.265, p < 0.001), such that the association between HCD and TI is stronger at higher levels of IID. Institutional age is also positively associated with TI (β = 0.119, p = 0.001). The study concludes that intermediary development is associated with the relationship between HCD and technological innovation in universities. The findings suggest that universities and policymakers may complement investments in human capital with efforts to strengthen intermediary structures, such as innovation hubs and technology transfer offices, to support innovation-related activities.