06/05/2024

Collaboration Requires Proximity

However, it doesn't have to be physical

The future of work is undoubtedly hybrid. Major corporations from Apple to Zoom now require employees to be in the office two or three days a week, citing the benefits of face-to-face collaboration and culture building. Indeed, traditional thinking suggests that being physically close leads to better communication and collaboration.

Our recent research reinforces this idea, but also shows that social closeness (strong direct and indirect connections) can offset a lack of physical proximity. Namely, we found that when people are physically close, the need for strong social bonds is less crucial; conversely, strong social connections can compensate for physical distance. In other words, physical proximity and social closeness can substitute for each other.

Putting proximity to the test

In our study, we took advantage of the relocation of a global pharmaceutical company’s regional offices to conduct a quasi-natural experiment. The offices, located in Singapore and Kuala Lumpur, were moved to new sites in the same cities. The new offices had an open-floor layout and hot desk policy where employees did not have assigned workspaces.

Please select this link to read the complete article from INSEAD Knowledge.