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Abstract:

cover
CEP Discussion Paper
Is Distance Dead? Face-to-Face Communication and Productivity in Teams
Diego Battiston, Jordi Blanes i Vidal and Tom Kirchmaier March 2017
Paper No' CEPDP1473:
Full Paper (pdf)

JEL Classification: D23; M11


Tags: teamwork; face-to-face communication; distance; organisations

Has technology made face-to-face communication redundant? We investigate using a natural experiment in an organisation where a worker must communicate complex electronic information to a colleague. Productivity is higher when the teammates are (exogenously) in the same room and, inside the room, when their desks are closer together. We establish face-to-face communication as the main mechanism, and rule out alternative channels such as higher effort by co-located workers. The effect is stronger for urgent and complex tasks, for homogeneous workers, and for high pressure conditions. We highlight the opportunity costs of face-to-face communication and their dependence on organisational slack.