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Abstract
The current study is a first step in investigating how virtual
organizations can manage remote employees effectively. The
research used self-efficacy theory to build a model that predicts
relationships between antecedents to employees' remote work
self-efficacy assessments and their behavioral and attitudinal
consequences. The model was tested using responses from 376
remotely-managed employees in 18 diverse organizations.
Overall, the results indicated that remote employees' self-
efficacy assessments play a critical role in influencing their
remote work effectiveness, perceived productivity, job
satisfaction and ability to cope. Furthermore, strong
relationships were observed between employees' remote work
self-efficacy judgments and several antecedents, including
remote work experience and training, best practices modeling
by management, computer anxiety, and IT capabilities. Because
many of these antecedents can be controlled managerially, these
findings suggest important ways in which a remote employee's
work performance can be enhanced, through the intermediary
effect of improved remote work self-efficacy. The current study
also provides a basis for future research in the remote work area
through its development and testing of a remote management
framework.
Issue Section:
Original Article
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Introduction
There are clear trends towards increased virtual work and greater
reliance on technology. Consequently, we need to learn more about
virtual organizations. This task is, however, difficult for researchers,
and may help explain why there is a dearth of research on the topic.
One reason for this difficulty relates to the speed of change. As
information technology (IT) researchers are well aware, researching
a movable target presents unique challenges.
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Self-Efficacy Theory
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repeated failures lower them (Gist & Mitchell, 1992; Saks, 1995;
Silver, Mitchell & Gist, 1995). The second is vicarious experience,
which is gained by observing others perform activities successfully.
This is often referred to as modeling, and it can generate expectations
in observers that they can improve their own performance by
learning from what they have observed (Bandura, 1978; Gist &
Mitchell, 1992). Social persuasion is the third, and it refers to
activities where people are led, through suggestion, into believing
that they can cope successfully with specific tasks. Coaching and
giving evaluative feedback on performance are common types of
social persuasion (Bandura, 1977; Bandura & Cervone, 1986). The
final source of information is physiological and emotional states. The
individual's physiological or emotional states influence self-efficacy
judgments with respect to specific tasks. Emotional reactions to such
tasks (e.g., anxiety) can lead to negative judgments of one's ability to
complete the tasks (Bandura, 1988).
Figure 1
Self-Efficacy Theory
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Figure 2
Antecedents
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Self-Efficacy
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Outcomes of Self-Efficacy
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Method
Sample
A questionnaire was sent to 1,343 individuals working in 18 North
American organizations, who (1) employed individuals who worked
remotely from their managers, and (2) were interested in
participating in a study of remote management. Completed
questionnaires from 631 respondents were returned, for an overall
response rate of 47%. Use of the procedure suggested by Armstrong
and Overton (1977) indicated no significant differences between
respondents and non-respondents on a variety of demographic
variables included in the questionnaire. Thus, non-response bias did
not appear to be a major problem.
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private sector financial service firms, and the remaining 31% worked
in the public sector. Although all employees included in this sample
worked remotely, only seventeen per cent actually worked at home,
with the vast majority of the seventeen percent indicating that it was
easy for them to do so. The median distance between the
respondents’ office and their managers’ office was 483 kilometres.
Construct Measurement
The questionnaire completed by the respondents contained multiple
measurement items relating to each of the constructs in the research
model. Wherever possible, appropriate scales that had demonstrated
good psychometric properties in previous studies were employed.
However, for the remaining constructs, sets of items were generated
based on reviews of previous relevant literature and expert opinion.
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Connectivity 3 .88
IT Self-efficacy 4 .78
Five of the constructs were measured using scales taken from the
literature. A short form of the Computer Anxiety Rating Scale
(Heinssen, Glass & Knight, 1987), developed by Compeau (1992), was
used to assess computer anxiety of respondents. Four items from
House, Schuler, and Levanoni's (1983) role ambiguity/coping ability
scale were used to measure ability to cope. This short form of the
House et al. (1983) scale had previously been used successfully by
Saks (1995). Four items from the short version of the Mowday, Steers
and Porter (1979) Organizational Commitment Questionnaire were
used to measure organizational commitment. A five item scale
developed by Rizzo, House and Lirtzman (1970) was used to measure
job stress.
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Analysis
A structural equation modeling technique called Partial Least Squares
(PLS) was chosen for analyzing the research model (Wold, 1985). PLS
is a technique that uses a combination of principal components
analysis, path analysis, and regression to simultaneously evaluate
theory and data (Pedhazur, 1982; Wold, 1985). The path coefficients
in a PLS structural model are standardized regression coefficients,
while the loadings can be interpreted as factor loadings. A detailed
discussion of the implementation of PLS in an information systems
context is provided by Barclay, Higgins and Thompson (1995), who
also compare PLS and LISREL. PLS is ideally suited to the early stages
of theory development and testing – as is the case here – and has
been used by a growing number of researchers from a variety of
disciplines (e.g., Birkinshaw, Morrison & Hulland 1995; Green,
Barclay & Ryans 1995; Higgins, Duxbury and Irving 1992).
Results
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The bold diagonal elements are the square root of the variance shared between
the constructs and their measures (i.e., the average variance extracted). Off
diagonal elements are the correlations between constructs. For discriminant
validity, the diagonal elements should be larger than any other corresponding row
or column entry.
With few exceptions, the constructs all had acceptable reliability and
validity. Two constructs (e.g., IT self-efficacy, and satisfaction with
other job factors) had somewhat lower Cronbach's alphas; however,
each of them had acceptable internal consistency values as assessed
using the Fornell and Larcker (1981) measure. The latter is calculated
independently of the number of items employed for a construct,
whereas alpha is not, and it thus provides a more robust assessment
of internal consistency. Furthermore, the Fornell and Larcker
approach (1981) uses the observed loadings, and therefore more
accurately reflects the relative importance of each of the underlying
measures. Thus, use of the Fornell and Larcker (1981) internal
consistency values is preferred, and it was concluded that all of the
constructs used here had acceptable internal consistency.
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2
Construct Name Variance Explained (R )
IT Self-efficacy 82.4%
Hypothesis Testing
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Figure 3
2
The Research Model with Path Coefficients and R Values
H3: Modeling by Manager of effective remote management and remote work pract
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. Connectivity → IT Self-Efficacy
H7: Greater levels of IT self-efficacy will positively impact remote work self-efficacy
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*p < .05; **p < .01; ***p < .001 (2 tailed test)
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new construct were the same as those used in the prior analysis (i.e.,
13 items; internal consistency = 0.92; Cronbach's alpha = 0.81). In
addition, the Physical Conditions construct was dropped from the
refined model entirely, since the results from the initial model
indicated no support for the link between this construct and self-
efficacy. Figure 4 shows the simpler, refined model resulting from
these changes.
Figure 4
2
The Revised Research Model with Path Coefficients and R Values
The refined model was analyzed using the second data subset (n =
185), again using PLS. The explanatory power of the model was
2
reduced only slightly (i.e., the remote work self-efficacy R = 0.31
versus 0.36 previously), suggesting acceptable model stability across
the two data subsets. As can be seen by the path coefficients and
significance levels reported in Figure 4, all of the estimated path
coefficients in this simpler model were significant and in the
direction hypothesized, with two exceptions. Neither the path from
remote work self-efficacy to organizational commitment nor the
path from remote work self-efficacy to job stress were significant.
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Discussion
Model Results
Predictive Power
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Antecedents of Self-Efficacy
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Outcomes of Self-Efficacy
For all five of the outcome hypotheses, the paths leading from remote
work self-efficacy to the outcome constructs in the initial model
analysis were significant, substantive, and in the hypothesized
direction. The expected relationships between remote work self-
efficacy and the three behaviors examined in this study (i.e.,
performance, ability to cope, and stress) were all supported in the
initial analysis (hypotheses 8, 10, and 12). The significant links
between remote work self-efficacy and the two perceived
performance constructs, overall productivity and remote work
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The study described here is the first of its kind to develop and test a
comprehensive model of remote management, using respondents
who are employed in remote work across a wide range of occupations
and geographical settings. Keen (1980) has suggested that it is better
to borrow from a reference discipline rather than to invent an entirely
new theory. Consequently, in developing our initial research model,
we drew heavily on self-efficacy theory.
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The results of our study also indicate that remote work self-efficacy
is positively associated with both higher perceived levels of
performance and more positive work attitudes. Thus, training and
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supporting employees so that they are better able to carry out those
tasks that were used to operationalize remote work self-efficacy will
benefit virtual organizations. These tasks generally dealt with the
employee's ability to set objectives, use time effectively, obtain
access to managers and co-workers, use information technology,
manage an office, and access information effectively. Actions by
virtual organizations that help develop these abilities in their remote
employees, as well as the employees' beliefs in their ability to carry
out these tasks, are likely to be beneficial in terms of increased
performance and positive work attitudes.
Conclusion
Acknowledgments
Footnotes
Appendix
Item Wording
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Uses and runs teleconference calls effectively (e.g., sets objectives & format,
encourages participation)
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Assesses my performance based on the results I achieve rather than how I spent
my time
Computer Anxiety
It scares me to think that I could cause the computer to destroy a large amount
of information by hitting the wrong key
I hesitate to use a computer for fear of making mistakes that I cannot correct
Item Wording
Physical Conditions
Get a response from my manager for a request for advice or help within the
same day
Get a response from my manager for a request for advice or help within 2 to 3
days
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Item Wording
Ability to cope
I often find that I cannot figure out what should be done to accomplish my
work*
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Overall Productivity
Organizational Commitment
For me, this is the best of all possible organizations for which to work
Job Stress
I often “take my job home with me” in the sense that I think about it when
doing other things
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