Over the last few years I have studied how working from home (WFH) and hybrid working impact productivity and innovation within the firm. We are also studying the impact of network position on the quality of innovation testing influential ideas about structural holes and bridging. Last, with support from the Microsoft AI Economy Institute (2026), we are also studying the impact of AI on innovation.
Publications:
Innovator Networks within the Firm and the Quality of Innovation (joint with M. Gibbs)and C. Siemroth, SSRN working paper (2025).
Abstract: Using data of about 48,000 innovators within a firm, we study how network position affects innovation, measured by the quality of ideas proposed in a formal suggestion system. Network degree is associated with higher quality ideas. Bridging across structural holes is negatively related to idea quality in the short run, but has positive effects in the medium run. Bridging also has positive and persisting effects on the quality of colleagues' ideas, suggesting a positive externality of `brokers.' Network size is not related to idea quality, after controlling for degree and bridging. Compared to working from the office, remote work leads to lower average network degree and bridging. This weakening of networks may explain the reduced quality of innovation during remote work found in prior literature.
Work from Home and Productivity: Evidence from Personnel and Analytics Data on IT Professionals, (joint with M. Gibbs and C. Siemroth), Journal of Political Economy - Microeconomics 1(1) (2023), 7-14.
Abstract: We study employee productivity before and during the working-from-home period of the COVID-19 pandemic, using personnel and analytics data from over 10,000 skilled professionals at an Indian technology company. Hours worked increased, output declined slightly, and productivity fell 8%–19%. We then analyze determinants of productivity changes. An important source is higher communication costs. Time spent on coordination activities and meetings increased, while uninterrupted work hours shrank considerably. Employees networked with fewer individuals and business units inside and outside the firm and had fewer one-to-one meetings with supervisors. The findings suggest key issues for firms in implementing remote work.
Abstract: The Covid-19 pandemic forced firms globally to shift workforces to working from home [WFH]. Firms are now struggling to implement a return to working from the office [WFO], as employees enjoy the significant benefits of WFH for their work-life balance. Therefore many firms are adopting a hybrid model in which employees work partly from the office and partly from home. We use unique and detailed data from an Indian IT services firm which contains a precise measure of innovation activity of over 48,000 employees in these three work environments. Our key outcomes are the quantity and quality of ideas submitted by employees. Based on an event study design, the quantity of ideas did not change during the WFH period as compared to WFO, but the quality of ideas suffered. During the later hybrid period, the quantity of submitted ideas fell. In the hybrid phase innovation suffered particularly in teams which were not well coordinated in terms of when they worked at the office or from home. Our findings suggest that remote and hybrid work modes may inhibit collaboration and innovation.
This work has been covered extensively by the media. Under these links you can read up on some of their takes.
[Media: The Economist I, The Economist II, The Economist III, The Economist IV, Time Magazine, Financial Times I, Financial Times II, Financial Times III, Wall Street Journal, New York Times, Bloomberg, BBC, Wirtschaftswoche, Wired, Le Nouvel Economiste, Diario Financiero Chile, Hong Kong Economic Times, Radio Suffolk, New York Post, GQ Magazine; Blogs/Podcasts: marginalrevolution, money for the rest of us,...]Here is a video explaining some of the work. And here some podcasts one of my co-authors participated in: Booth podcast 1 Booth podcast 2
Here is a newsreport from ABC illustrating some of the impact this work has had.