Does remote work adoption boost firm innovation? A cross-cultural study

The unprecedented large-scale remote work practices during the COVID-19 pandemic have demonstrated the effectiveness of this new way of working. However, previous findings regarding the influence of remote work adoption on firm innovation have been inconsistent. Building upon the culture fit perspective, the current study aims to examine the vital role of national culture in shaping the relationship between remote work adoption and firm innovation. Specifically, we propose that the adoption of remote work will foster firm innovation, particularly when the cultural characteristics are congruent with the nature of remote work. Based on multi-wave data collected from 8,053 firms across 21 countries, research findings from our multilevel analysis suggest that the positive effect of remote work adoption on firm innovation was stronger in nations with low power distance, high indulgence, and short-term orientation. The current study sheds light on the cultural factors in remote work practices and also has practical implications for organizations transitioning to remote or hybrid work in the post-COVID-19 era.