Bridging the Gap Between Returnee Entrepreneurs and Firm Performance in Kosovo: The Mediating Role of Knowledge Transfer.

This article examines how returnee entrepreneurs—individuals who migrate abroad and then return to their homeland—affect firm performance in Kosovo, focusing on the mediating role of knowledge transfer. Using structural equation modelling on survey data from 151 firms owned by returnees, the study finds that returnee migration alone does not directly improve firm performance; rather, effective knowledge transfer within firms is crucial for leveraging the international expertise, skills, and networks that returnees bring. The findings highlight the importance of firms' absorptive capacity—the ability to recognize, assimilate, and apply external knowledge—in translating returnee human capital into tangible business outcomes. The study offers implications for policymakers and managers in developing and transition economies, suggesting that fostering structured knowledge-sharing mechanisms and supportive organizational cultures is essential to maximize the economic benefits of returnee migration.