Remote work can boost innovation, but culture eats it for breakfast

The effects of remote work on innovation can vary dramatically depending on the cultural context of a country, according to new research by Durham University Business School. Analysing data from over 8,000 firms across 21 countries, the study suggests that remote working significantly enhances innovation in cultural contexts characterised by low power distance, high indulgence, and notably, short-term orientation. It found that companies based in European countries, like Lithuania, Latvia and Hungary, experienced far greater innovation gains from flexible working compared to companies in more hierarchical and long-term planning cultures such as the Middle East and African region.

Countries such as Lithuania, Latvia, and Hungary, which feature low ‘power distance’— where employees are treated more equally and have greater autonomy — benefit substantially from remote working arrangements. Low power distance cultures, marked by decentralised decision-making and more democratic participation, facilitate the open communication and autonomy necessary for innovative thinking.

High indulgence societies – where work-life balance and freedom are culturally valued – like Greece, Malta, and Slovenia also show considerable gains in innovation when adopting remote work. Cultures high in indulgence encourage enjoyment, leisure, and flexibility in lifestyle, which aligns well with the autonomous and less structured nature of remote work, further boosting creativity and innovative outcomes.

The research suggests that countries with a short-term orientation – where adaptability and flexibility are more prized than rigid, long-term planning —, such as Lebanon, Morocco, and Jordan also experience stronger innovation outcomes from remote work adoption.

These findings challenge previous assumptions, suggesting that these cultures’ flexibility and rapid adaptability to immediate challenges are well-suited to the agile and responsive nature of remote working environments, particularly in dynamic contexts like the recent global pandemic.

“Our research shows that remote work is not a one-size-fits-all strategy when it comes to driving innovation,” says Professor Saadat Saeed who led the study. “”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.”.”

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 research offers important insights for companies operating internationally or managing cross-cultural teams. The researchers urge business leaders to carefully consider cultural context when developing and implementing remote or hybrid work policies, rather than assuming that approaches successful in one country will easily translate to another.

“This is especially important for multinational companies,” adds Professor Saeed. “A remote work policy designed in London or New York may need significant adaptation to be effective in Beijing or New Delhi. Understanding and aligning with local cultural values can make the difference between a successful innovation strategy and a missed opportunity.”

The study also highlights that organisations in more traditional cultures may require additional support and infrastructure to help employees adjust to remote work environments. This includes leadership training, clearer communication protocols, and tools that promote trust and collaboration without micromanagement.