The Mediating Effect of Intellectual Capital on the Quality of Higher Education and Capital Wellness

Abstract

This study aimed to determine the mediating effect of intellectual capital on the quality of higher education and financial wellness. It is a quantitative research that made use of descriptive-correlation design with 403 respondent institutions from public and private HEIs in the East Africa Community. Data were analyzed using descriptivE AND INFERENTIAL STATISTICS. Results showed that quality of higher education and intellectual capital was perceived to be high; the level of financial wellness was good, and intellectual capital partially mediated the relationship of quality higher education and financial wellness. The direct effect of quality higher education on financial wellness is 0.613 at p-value 0.05 and its indirect effect, which is the mediation effect of intellectual capital, is 0.266 (0.378 * 0.703). The total effect of quality higher education on financial wellness when mediated by intellectual capital is 0.879 (0.613+0.266). Higher Education Institutions need to create a system that will ensure the regular assessment of the quality of education that they offer and their intellectual capital to increase capital wellness.