Assessing the Impact of Remote Work and Hybrid Work on Project Performance and Team Effectiveness: A Multi-Sector Perspective in Project Management Focus on IT projects vs Non-IT projects
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The study examines the impact of remote/hybrid work modes on project success and team effectiveness in the IT and non-IT sectors. This research goes beyond the two-dimensional work mode (remote or onsite) to consider virtuality in a multidimensional way by adopting the Project Management Institute (PMI) virtual team model, which defines virtual teams based on structural dimensions, including geographical distance and time-zone differences.
Primary data was collected using a quantitative, cross-sectional survey of 50 project professionals involved in recently completed projects. The study measured project performance through time, cost, quality, scope, and customer satisfaction, and team effectiveness through communication, trust and collaboration. Reliability, descriptive statistics, correlation, multiple regression and clustering were used for statistical analysis.
The results show that virtuality doesn't affect project performance negatively; rather, it's positively associated with team effectiveness and performance. Communication, trust and collaboration were found to have significant correlations with project success, with team effectiveness being the most important predictor of performance. By using mediation tests, virtuality was found to impact performance through the mechanisms of team effectiveness. While descriptive differences were observed between IT and non-IT projects in various sectors, there were no significant differences.
A cluster analysis revealed three different virtual team types - low, moderate, and high virtuality - affirming that virtual teams are diverse and should not be considered a monolithic group. The research adds to the literature theoretically by confirming the PMI typology, and highlighting the mediating effects of team effectiveness. It has practical implications in highlighting that the success of projects in virtual and hybrid work settings is based more on team processes than on team location.
In summary, the study concludes that companies should emphasise effective communication, trust and collaboration in the design of virtual teams, rather than solely location. This knowledge is beneficial to project managers in maximising team effectiveness in virtual work settings.