Labor Compliance and Innovation as Drivers of Service Quality in Philippine Private Security: A Mixed-Methods Study

The Philippine private security industry is a large and growing sector that employs over half a million personnel and generates significant economic value. This mixed-methods study examines how labor compliance, contract practices, and technology adoption influence service quality among private security providers. A survey of 200 client-side security managers was coupled with qualitative interviews of industry stakeholders. Quantitative analysis using partial least squares structural equation modeling (PLS-SEM) assessed relationships between four latent constructs: Technology & Innovation (TI), Pricing & Contract Preferences (PCP), Service Quality Compliance (SQC), and Risk Management & Adaptability (RA). Results indicate that fair pricing and contract terms (PCP) (β = 0.472, p < .01) and technology adoption (TI) (β = 0.327, p < .05) significantly improve service quality compliance. In contrast, risk management adaptability (RA) showed no direct effect. TI also positively influences RA (β = 0.418, p < .01). Qualitative themes reinforce these findings: widespread wage underpayment and labor violations undermine service quality, and weak enforcement of regulations blunts the impact of operational improvements. Slow adoption of advanced security technology and high guard turnover (due to low pay) emerged as persistent challenges. We discuss these results in the context of industry trends and literature, highlighting the critical role of labor law compliance and innovation in enhancing security services. Managerial implications include enforcing contract labor standards, incentivizing technology use, and improving guard conditions to bolster retention. The study contributes to labor compliance and service quality theory and offers practical insights for security firms, clients, and policymakers.