Remote working has become a mainstream practice globally, but its effects on innovation can differ dramatically depending on the cultural context of a country.
Research involving Saadat Saeed (Associate Professor from our Department of Management & Marketing), Bin Wang (Monash Business School), Yue Zhang (Curtin University), Xiang Fang and Xiaoyu Yu (both Shanghai University) analysed data from over 8,000 firms across 21 countries and found that remote work significantly enhances innovation in cultural contexts characterised by low power distance, high indulgence, and notably, short-term orientation.
The study reveals that companies in European countries such as Lithuania, Latvia and Hungary experienced far greater innovation gains from remote work compared to companies in more hierarchical and long-term planning cultures such as Middle East and African region. Countries such as Lithuania, Latvia, and Hungary, which feature low 'power distance' - a measure indicating how societies handle inequality and hierarchical relationships - benefit substantially from remote working arrangements.
Societies with high indulgence, including Greece, Malta, and Slovenia also see strong gains in innovation when adopting remote work. In these cultures, the value placed on enjoyment, leisure, and flexibility in lifestyle aligns well with the autonomous and less structured nature of remote work, further boosting creativity and innovative outcomes.
Intriguingly, the research found that short-term orientated countries, such as Lebanon, Morocco, and Jordan, also experience stronger innovation outcomes from remote work. This challenges previous assumptions, suggesting that these cultures’ adaptability and responsiveness to immediate challenges make them well-suited to agile working models, particularly during disruptive events like the COVID-19 pandemic.
“This is not a one-size-fits-all strategy when it comes to driving innovation,” says Dr Saeed. “Understanding the nuanced interplay between remote work and national culture is crucial. Companies must tailor their remote work strategies carefully, ensuring they resonate with cultural values to fully harness their innovative potential.”
The study highlights three key cultural dimensions that amplify the innovation benefits of remote work:
These traits are more commonly found in Western cultures, which helps explain why remote work has proven more successful at fostering innovation in those regions. In contrast, cultures with strong hierarchical traditions, low tolerance for risk, and a heavy focus on long-term planning may struggle to adapt quickly to remote models, particularly during times of crisis like the COVID-19 pandemic.
The findings carry important lessons for multinational companies. A remote work policy designed in London or New York, may not automatically succeed in Beijing or New Delhi. To roll out effective remote or hybrid work models globally, businesses must consider cultural alignment, invest in leadership training, communicate protocol clearly, and build trust and collaboration across regions without micromanagement.
As remote and hybrid working has become more prevalent in recent years, the researchers stress the need for culturally informed management practices that help unlock innovation globally.
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