Wissal Khazzai
KEDGE Business School
3 March 2026
Marseille
This report is submitted in partial fulfilment of the Business Research
Skills and Methods course at KEDGE Business School.
Word count: words
Statement of Originality and Ethical
Conduct
I hereby declare that this report, titled "The Impact of Remote Work on Employee
Productivity in Knowledge-Based Industries ", submitted as partial fulfillment of the
requirements for the degree of Master in Management Grand Ecole at Kedge business school is
my original work and has not been submitted previously for a degree or diploma at any other
educational institution.
I confirm that:
1. I have fully acknowledged and referenced all sources of information and data used in the
preparation of this thesis using APA 6th level standard.
2. All verbatim extracts have been distinguished by quotation marks and the sources of
information specifically cited (with a name and year of publication).
3. No material other than that referenced and acknowledged has been used in the
preparation of this thesis.
4. The work and research presented in this report have been carried out in accordance with
the academic and ethical standards of Kedge business school
5. I am aware of the rules on the use of generative Artificial Intelligence (AI) on this course.
6. Any use of generative AI tools (such as Chat GPT, Copilot, etc.) must be declared
upfront, with all prompts and outputs included in the appendix of your reports and
correctly cited.
7. A self-assessment of similarity of Safe assign is 26%
8. A self-assessment of AI generated text is 14%
I am aware of the consequences of breaching academic integrity policies of Kedge
business school including the potential disqualification from the degree program.
Signed,
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Executive summary
Telecommuting has emerged as a defining characteristic of knowledge-based sectors in the wake
of the COVID-19 pandemic. Although there is an increasing trend towards hybrid or fully
remote work arrangements in organisations, there is a great deal of controversy about its impact
on the productivity of employees.
This report critically evaluates the literature on the impact of telecommuting on productivity. The
study examines the conflicting evidence, theoretical approaches such as Job Demands-Resources
Theory and Self-Determination Theory, and contextual factors such as industry type,
geographical location, and time horizon.
The study concludes that telecommuting does not have a positive or negative impact on
productivity. Instead, the impact is contingent. Future research needs to focus on the moderating
variables in knowledge-based sectors.
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Abbreviations list
JD-R – Job Demands–Resources (Model)
SDT – Self-Determination Theory
US – United States
WFH – Work From Home
WFA – Work From Anywhere
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Glossary
Hybrid Work Model
A working arrangement in which employees divide their time between remote work and on-site
office work.
Job Demands–Resources (JD-R) Model
A theoretical framework proposing that employee performance and wellbeing depend on the
balance between job demands (e.g., workload, pressure) and job resources (e.g., autonomy,
support).
Knowledge-Based Industry
An industry in which the primary source of value creation is intellectual capability rather than
physical labour. Examples include finance, consulting, IT, and marketing.
Productivity
The efficiency with which employees convert time, skills, and resources into measurable work
outputs such as completed tasks, revenue, innovation, or performance indicators.
Remote Work
A work arrangement where employees perform their job outside the traditional office
environment, typically from home or another off-site location.
Self-Determination Theory (SDT)
A psychological theory stating that motivation and performance improve when individuals
experience autonomy, competence, and relatedness.
Social Capital
The value derived from relationships, trust, and informal networks within an organisation that
facilitate collaboration and knowledge sharing.
Work From Anywhere (WFA)
A flexible work arrangement allowing employees to work from any geographic location without
being tied to a specific office.
Work From Home (WFH)
A form of remote work where employees perform their job duties from their home.
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Table of content
Statement of Originality and Ethical Conduct..................................................................1
Executive summary............................................................................................................2
Abbreviations list................................................................................................................3
Glossary...............................................................................................................................4
Table of content...........................................................................................................................5
1 Introduction................................................................................................................6
2 Literature Review........................................................................................................8
3 Concluions.......................................................................................................................9
References.........................................................................................................................10
APPENDIX.......................................................................................................................11
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1 Introduction
1.1 Background to the Study :
Remote work grew in popularity during the COVID-19 pandemic and continues to be common
in knowledge-intensive sectors such as finance, advisory, technology, and marketing.
Technological improvements in collaboration software have made it less necessary for people to
be in the same location for many activities. Yet, the literature remains split on whether
telecommuting increases or decreases productivity.
1.2 Research Significance
The significance of this study is that it will help to clarify the implications of productivity, which
is important for knowledge-intensive sectors that are highly dependent on human capital. If
remote work is productivity-enhancing, companies could cut costs on office space and expand
their talent pool. If it is productivity-deteriorating, companies could face challenges in terms of
long-term competitiveness.
1.3 The Research Problem
The literature is split on the implications of telecommuting for productivity. On the one hand,
there is evidence of productivity gains from increased autonomy (Bloom et al., 2015), while on
the other hand, there is evidence of lost collaboration and innovation (Gibbs et al., 2023). The
research problem that will be addressed in this literature review is:
How much does remote work affect employee productivity in knowledge-intensive sectors?
1.4 Scope of This Research
This literature review will examine knowledge-intensive sectors in developed countries since
2010. Excluded are manufacturing and manual labor settings.
1.5 Research Aim and Objectives
Aim:
To critically assess the effect of telecommuting on employee productivity in knowledge-
intensive sectors.
Objectives:
To review the literature on the productivity effect.
To review the literature on the theoretical explanations of the effect.
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To assess the literature on contextual and moderating factors.
To determine the literature gaps for future primary research.
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2 Literature Review
This chapter critically assesses important themes and issues.
2.1 Productivity and remote work Outcomes
There are positive productivity outcomes in some empirical research. Bloom et al. (2015), in a
randomised control trial in China, showed a 13% increase in productivity for teleworkers.
Similar results were shown by Choudhury et al. (2021) for “work-from-anywhere” arrangements.
But these results are not generalisable. Bloom et al. studied a call centre, and it is difficult to
generalise these results to creative knowledge work. More recent research on a large scale
indicates that increased productivity during the pandemic was due to increased working hours,
rather than productivity gains (Gibbs et al., 2023). This reduces the validity of claims for
sustainable productivity gains.
2.2 Autonomy and Motivation
According to Self-Determination Theory, autonomy increases intrinsic motivation, which may
lead to improved performance (Deci & Ryan, 2000). Telework may increase flexibility in
working hours, which may lead to improved motivation.
However, autonomy can also raise job demands. Without proper boundaries, employees can
suffer from burnout. The Job Demands-Resources model suggests that productivity is a function
of balancing autonomy with adequate support (Bakker & Demerouti, 2007). Empirical research
has found mixed results based on management approaches and individual differences.
2.3 Collaboration, Innovation, and Social Capital
The most significant concern about remote work is the loss of informal interactions. Research
has found that proximity to others increases knowledge sharing and innovation (Allen, 1977).
Recent research in the tech industry has found that remote work decreases inter-team
collaboration and patent production (Gibbs et al., 2023).
However, other studies have suggested that digital collaboration platforms can substitute for
collaboration if designed properly (Waizenegger et al., 2020). These studies have typically used
short-term data, making it difficult to understand long-term innovation impacts.
2.4 Industry and Geographic Differences
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Most of the existing research is pre-COVID and has been conducted in the US in voluntary
telework arrangements. Recent studies have been conducted in forced remote work conditions,
which could be problematic.
Cultural differences are also important. In trust-based cultures, remote work is more successful.
There is a lack of international comparative studies.
3 Concluions
The literature indicates that remote work does not consistently enhance or diminish productivity.
Instead, outcomes are shaped by factors such as employee autonomy, managerial trust,
collaboration mechanisms, and broader cultural context.
Reported productivity gains are frequently task-specific or short-term in nature. Conversely,
findings suggesting reduced innovation point to potential long-term organisational risks. The
limited availability of longitudinal and sector-specific studies restricts the ability to draw firm
conclusions.
Future research should therefore investigate how hybrid work models affect sustainable
productivity within defined knowledge-based industries, with particular attention to contextual
and managerial moderating factors.
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References
Allen, T. J. (1977). Managing the flow of technology. Cambridge, MA: MIT Press.
Bakker, A. B., & Demerouti, E. (2007). The job demands–resources model: State of the art.
Journal of Managerial Psychology, 22(3), 309–328. [Link]
Bloom, N., Liang, J., Roberts, J., & Ying, Z. J. (2015). Does working from home work?
Evidence from a Chinese experiment. Quarterly Journal of Economics, 130(1), 165–218.
[Link]
Choudhury, P., Foroughi, C., & Larson, B. (2021). Work-from-anywhere: The productivity
effects of geographic flexibility. Strategic Management Journal, 42(4), 655–683.
[Link]
Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the
self-determination of behavior. Psychological Inquiry, 11(4), 227–268.
Gibbs, M., Mengel, F., & Siemroth, C. (2023). Work from home and productivity. American
Economic Review: Papers & Proceedings, 113, 1–5.
Waizenegger, L., McKenna, B., Cai, W., & Bendz, T. (2020). An affordance perspective of team
collaboration and enforced working from home during COVID-19. European Journal of
Information Systems, 29(4), 429–442. [Link]
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APPENDIX
AI TOOL USED: ChatGPT (OpenAI)
PURPOSE OF USE:
ChatGPT was used to assist with structural organisation of the report, refinement of academic
phrasing and formatting of references according to APA 6th edition. The tool was not used to
generate uncited academic sources or fabricate references.
PROMPTS USED:
1. “Shorten the introduction to fit within a 1000-word limit.”
2. “Format references according to APA 6th edition.”
3. “Create an abbreviations list and glossary relevant to this study.”
USE OF OUTPUT:
All AI-generated content was reviewed, edited, and adapted by the author to ensure academic
accuracy, originality, and compliance with course guidelines. Final responsibility for the content
lies solely with the author.
- Appendix B: SafeAssign Similarity Report :
SafeAssign similarity score: 26%
(Insert screenshot of similarity report here.)
The similarity score reflects properly cited academic sources and standard referencing structures.
No uncited or plagiarized material is included in this report.
- Appendix C: AI-Generated Text Detection Report :
AI detection score: 14%
(Insert screenshot of AI detection report here.)
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The use of generative AI was limited to structural and editorial assistance. All content was
critically reviewed and rewritten where necessary to ensure originality and academic integrity.
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