This study investigates the complex interplay between innovation and traditional factors (labor and capital) in shaping the total factor productivity (TFP) of water and wastewater utilities during the COVID-19 pandemic. By analyzing data from 22 water utilities across Iran from 2019 to 2023, we shed light on the significant impact of these factors on productivity. Our findings reveal a nuanced picture. While traditional factors remained crucial, their marginal productivity declined due to pandemic-induced challenges such as supply chain disruptions and workforce limitations. However, business model innovation emerged as a critical driver of TFP. The adoption of digital technologies, remote work strategies, and customer-centric approaches enabled utilities to adapt to changing circumstances, enhance operational efficiency, and improve customer satisfaction. To sustain and enhance future productivity, water utilities should prioritize investments in innovation, digital transformation, and workforce development. Policymakers can play a crucial role by creating a conducive regulatory environment, providing incentives for innovation, and supporting infrastructure development. By understanding the interplay between traditional factors and innovation, policymakers and industry leaders can make informed decisions to optimize resource allocation, improve efficiency, and ensure the long-term sustainability of the water utility sector.
valibeigi, M. and shahrjerdi, M. (2025). Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective. Civil Engineering Infrastructures Journal, (), -. doi: 10.22059/ceij.2025.386860.2202
MLA
valibeigi, M. , and shahrjerdi, M. . "Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective", Civil Engineering Infrastructures Journal, , , 2025, -. doi: 10.22059/ceij.2025.386860.2202
HARVARD
valibeigi, M., shahrjerdi, M. (2025). 'Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective', Civil Engineering Infrastructures Journal, (), pp. -. doi: 10.22059/ceij.2025.386860.2202
CHICAGO
M. valibeigi and M. shahrjerdi, "Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective," Civil Engineering Infrastructures Journal, (2025): -, doi: 10.22059/ceij.2025.386860.2202
VANCOUVER
valibeigi, M., shahrjerdi, M. Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective. Civil Engineering Infrastructures Journal, 2025; (): -. doi: 10.22059/ceij.2025.386860.2202
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