The impact of employee engagement and innovation performance on business success in manufacturing and service enterprises in Albania and Kosovo

Abstract

This study aims to investigate the interplay between employee engagement and innovation performance in shaping the success of manufacturing and service enterprises in Albania and Kosovo. The data collection involved the distribution of questionnaires to entrepreneurs, managers, and employees of the enterprises, with direct interviews conducted in some cases. The data collection period spanned from the end of 2022 to the beginning of 2023. SPSS was employed to create the database and analyze the collected data. The study encompasses 190 companies operating in the services and production sectors, with 100 located in Albania and 90 in Kosovo. The selection of these sectors is based on their significant contribution to the region’s economic landscape. Of the total enterprises, 105 (55%) are manufacturing enterprises, and 85 (45%) are service enterprises.The findings reveal a robust and positive correlation between employee engagement, innovation performance, and business success. Employee engagement (r = 0.458**) and innovation performance (r = 0.396**) exhibit significant correlations (p < 0.01), with both factors demonstrating statistical significance (p = 0.000). The multivariate regression analysis confirms the positive influence of both employee engagement and innovation performance on business success, supported by a significance of ANOVA analysis (p = .000). This study contributes to the understanding of the specific dynamics of employee engagement and innovation performance in the context of manufacturing and service enterprises in Albania and Kosovo. It offers valuable insights for managers and entrepreneurs seeking to enhance the success of their organizations.