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Work From Home Arrangements and Organizational Performance in Italian SMEs: Evidence from the COVID-19 Pandemic

Author

Listed:
  • Abrardi Laura

    (DIGEP, Politecnico di Torino, Italy)

  • Grinza Elena

    (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; CEBRIG Universite Libre de Bruxelles; LABORatorio Riccardo Revelli)

  • Manello Alessandro

    (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; IRCrES-CNR)

  • Porta Flavio

    (Department of Economics, University of Bergamo, Italy)

Abstract

We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers' concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers' concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH.

Suggested Citation

  • Abrardi Laura & Grinza Elena & Manello Alessandro & Porta Flavio, 2022. "Work From Home Arrangements and Organizational Performance in Italian SMEs: Evidence from the COVID-19 Pandemic," Working papers 076, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    • Handle: RePEc:tur:wpapnw:076
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    Cited by:

    1. Ileana Cristina Constantinescu & Arti Grover & Gaurav Nayyar, 2024. "Digitalization, Remote Work and Firm Resilience : Evidence from the COVID-19 Shock," Policy Research Working Paper Series 10949, The World Bank.

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    More about this item

    Keywords

    Work From Home (WFH); Teleworking; Agile Working; Smart Working; Organizational Performance; Labor Productivity; Management by Objectives (MBO); COVID-19; Small- and Medium-sized Enterprises (SMEs); Survey Data.;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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