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Is distance dead? Face-to-face communication and productivity in teams

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  • Diego Battiston
  • Jordi Blanes i Vidal
  • Tom Kirchmaier

Abstract

Has technology made face-to-face communication redundant? We investigate using a natural experiment in an organisation where a worker must communicate complex electronic information to a colleague. Productivity is higher when the teammates are (exogenously) in the same room and, inside the room, when their desks are closer together. We establish face-to-face communication as the main mechanism, and rule out alternative channels such as higher effort by co-located workers. The effect is stronger for urgent and complex tasks, for homogeneous workers, and for high pressure conditions. We highlight the opportunity costs of face-to-face communication and their dependence on organisational slack.

Suggested Citation

  • Diego Battiston & Jordi Blanes i Vidal & Tom Kirchmaier, 2017. "Is distance dead? Face-to-face communication and productivity in teams," CEP Discussion Papers dp1473, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1473
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Covid-19 briefing: working from home and worker productivity
      by BankUnderground in Bank Underground on 2021-07-02 08:00:00

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    Cited by:

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    2. Okubo, Toshihiro, 2022. "Telework in the spread of COVID-19," Information Economics and Policy, Elsevier, vol. 60(C).
    3. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    4. Gokan, Toshitaka & Kichko, Sergey & Thisse, Jacques-François, 2019. "How do trade and communication costs shape the spatial organization of firms?," Journal of Urban Economics, Elsevier, vol. 113(C).
    5. Jacques Bughin & Michele Cincera, 2020. "F.O.G. and teleworking: Some labor economics of covid-19," Working Papers TIMES² 2020-037, ULB -- Universite Libre de Bruxelles.
    6. Adriana Arcos-Guanga & Omar Flor-Unda & Sylvia Novillo-Villegas & Patricia Acosta-Vargas, 2024. "The Impact of Knowledge Spillovers on Economic Growth from a National Perspective: A Comprehensive Analysis," Sustainability, MDPI, vol. 16(15), pages 1-24, July.
    7. Brindusa Anghel & Marianela Cozzolino, 2020. "Teleworking in Spain," Economic Bulletin, Banco de España, issue 2/2020.
    8. Consolo, Agostino & Cette, Gilbert & Bergeaud, Antonin & Labhard, Vincent & Osbat, Chiara & Kosekova, Stanimira & Anyfantaki, Sofia & Basso, Gaetano & Basso, Henrique & Bobeica, Elena & Ciapanna, Eman, 2021. "Digitalisation: channels, impacts and implications for monetary policy in the euro area," Occasional Paper Series 266, European Central Bank.
    9. Hani Al-Dmour & Rima Al Hasan & Motasem Thneibat & Ra’ed Masa’deh & Wafa Alkhadra & Rand Al-Dmour & Ali Alalwan, 2023. "Integrated Model for the Factors Determining the Academic’s Remote Working Productivity and Engagement: Empirical Study," SAGE Open, , vol. 13(3), pages 21582440231, August.
    10. Shradha Kundra & Naman Sreen & Rohit Dwivedi, 2023. "Impact of Work from Home and Family Support on Indian Women’s Work Productivity During COVID-19," Vikalpa: The Journal for Decision Makers, , vol. 48(1), pages 39-53, March.
    11. Ayodya S. R. Dahanayake, 2022. "The Next Normal Impact on Organizational Dynamics by Telecommuting Practices in Information Technology Industry of Sri Lanka," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 300-303, January.
    12. MORIKAWA Masayuki, 2018. "Long Commuting Time and the Benefits of Telecommuting," Discussion papers 18025, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    teamwork; face-to-face communication; distance; organisations;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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