Evaluating the effect of new working practices on office space usage in Hong Kong

Abstract

Purpose Many organizations in Hong Kong have witnessed a reduction in average space usage due to high occupancy costs. New working practices (NWPs) are viewed as a reform tool to manage expensive real estate around the world. However, it is unclear whether NWPs influence office space usage in business organizations in Hong Kong. This study, therefore, aims to evaluate if the average space reduction in office firms is caused by the NWPs in the finance, insurance, real estate and business (FIREB) firms. Design/methodology/approach A total of 20 NWPs were initially derived from the extant literature. A questionnaire survey was conducted with listed FIREB firms in Hong Kong to assess the impact of the identified NWPs on space usage. The data collected from the questionnaire survey were analysed using descriptive, explorative factor analysis (EFA) and partial least squares-structural equation modelling (PLS-SEM) to evaluate the effects of NWPs on average space usage. Findings Results revealed that four major NWP factors influence average space usage. Three of these factors, namely, “flexible arrangement”, “multitasking knowledge workers” and “teamwork and communication”, influence space usage positively. Even though the effect of the fourth factor “training and networking” was significant, it does not reflect a positive influence on space usage. Business organizations can focus more on the implementation of NWPs to cushion the effects of the high cost of occupancy. Originality/value The research provides new knowledge to the limited literature on the effect of NWPs in FIREB firms and enriches the growing body of international literature on how today’s competitive global business organizations should revisit their workplace strategies to accommodate the rising agile workforce and NWPs. The findings offer new insights into the ongoing debate on the impact of information and communication technology-enabled NWPs on space usage. From the real estate perspective, the findings should inform policymaking towards the better planning ahead of office properties to accommodate NWPs, helping Hong Kong to remain competitive as a key financial centre.

The study of sustainability as a mediator of new approaches to work and workspace usage

“…First, this study primarily examines the effect of NAW on workspace usage considering the role of sustainability dimensions on workspace management in a single comprehensive model. Hence, this research answers the call by Jayantha and Oladinrin (2019) for the study that broadens the knowledge about the role of sustainability in the relationship between NAW and workspace usage. Also, this research provides a holistic picture of technology-driven NAW by providing evidence from Indian IT companies.…”

“…Harris (2015) argued that NAW should be rather based on cost reduction in managing real estate rather than improving business performance. Jayantha and Oladinrin (2019) analyzed the existing literature which just supports the aspects of NAW on organizational structure and goals. However, the implementation of NAW in Asian corporates leading to a reduction in the workspace is still unexplored.…”

“…This has brought a change in work patterns and building structures focused more on the improvement of operations in the workspace and reduce workspace usage by employees. Adopting new approaches to work (NAW) such as telecommuting, hot desking, coworking, flexitime and activity-based working are becoming common these days, leading to constant changes in office structure, specifically in the information technology (IT) sector (Harris, 2015; Jayantha and Oladinrin, 2019). Joy and Haynes (2011) stated that office structures used in the 20th century including the elements of sustainability, current trends and practices followed by the corporate real estate (CRE) sector worldwide are becoming a hot topic to improve the quality of corporate buildings according to the changing demands of occupiers and the management.…”

Redesigning workspace at Adobe: an Indian perspective

“…First, this study primarily examines the effect of collaborative workplace design on workspace usage considering the role of sustainability dimensions on workspace management in a single comprehensive model. Hence, this research answers the call by Jayantha and Oladinrin (2019) for the study that broadens the knowledge about the role of sustainability in the relationship between workplace design and workspace usage. Also, this research provides a holistic picture of the value parameters driving changes in workplace design by providing evidence from Indian office space.…”

“…This has brought a change in work patterns and building structures focused more on the improvement of operations in the workspace and reducing workspace usage by employees. Adopting new approaches to work such as telecommuting, hot-desking, co-working, flexitime and activity-based working is becoming common these days, leading to constant changes in office structure (Alajmi and Ali, 2021; Jayantha and Oladinrin, 2019; Harris, 2015). Joy and Haynes (2011) stated that office structures used in the 20th century including the elements of sustainability, current trends and practices followed by the corporate real estate (CRE) sector worldwide are becoming a hot topic to improve the quality of corporate buildings according to the changing demands of occupiers and the management.…”