Innovation and Employee Productivity in Selected Private Higher Education Institutions in Laoag City: A Descriptive-Correlational Study

Abstract

This study investigated the relationship between technological, process, and product innovation and employee productivity among employees of selected private higher education institutions (HEIs) in Laoag City, Philippines. It also examined whether age, sex, educational attainment, job tenure, and nature of work moderated the innovation–productivity relationship and developed a strategic action plan for institutional utilization of the findings. The participants were 271 full-time academic and non-academic employees from selected private HEIs. The findings showed that the institutions reported high levels of technological, process, and product innovation and high employee productivity. Process innovation had the strongest positive and statistically significant relationship with employee productivity, while technological innovation had a statistically significant but weaker positive relationship. Product innovation did not have a statistically significant relationship with employee productivity. None of the demographic characteristics significantly moderated the innovation–productivity relationship. The study recommends institutionalizing feasible policies for process innovation, strengthening technology utilization and responsible artificial intelligence integration, refining academic programs through Business Analytics and Artificial Intelligence in Research Methods, and establishing participatory and governance mechanisms that can sustain innovation within existing institutional resources.