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Defying Gravity: What Drives Productivity in Remote Teams?

Author

Listed:
  • Thomas Fackler

    (ifo Institute, LMU Munich, CESifo, Laboratory for Innovation Science at Harvard)

  • Michael Hofmann

    (LMU Munich)

  • Nadzeya Laurentsyeva

    (LMU Munich, CESifo)

Abstract

How can teams organize for productive online collaboration? The coronavirus pandemic has led to a large and persistent shift toward remote work. Using fine-grained data from the world's largest platform for open-source software development, we find that the pandemic reduced the productivity of previously co-located teams substantially, whereas similar teams with remote work experience remained resilient. While access to remote talent and experience are important for overall team success, our results highlight the crucial role of communication for productive online collaboration. We find suggestive evidence that, with their peers shifting to online work, remote workers become better integrated into their teams' communication. We conclude that while teams' performance may suffer from the shift to remote work, setting up systems for effective online communication can help mitigate productivity loss.

Suggested Citation

  • Thomas Fackler & Michael Hofmann & Nadzeya Laurentsyeva, 2023. "Defying Gravity: What Drives Productivity in Remote Teams?," Rationality and Competition Discussion Paper Series 427, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:427
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    References listed on IDEAS

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    More about this item

    Keywords

    gravity model; open source; knowledge workers; knowledge flows; remote work; online labor markets; COVID-19;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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