We developed a dual-pathway, multi-level conceptual model that depicts the relationship between telework and firm performance. On the one hand, individual telework access is associated with greater levels of firm performance because it prompts social exchange processes between the employee and employer, resulting in lower employee turnover intentions. On the other hand, organizational telework dispersion is associated with lower firm performance because it prompts social identity processes; high dispersion in access to telework creates a psychological gap within an organization that is associated with lower levels of collective positive affective tone. Higher levels of collective organizational identification offset the negative effect of organizational telework dispersion on collective positive affective tone. This multi-level model is tested and supported by a multisource dataset containing 18,111 employees from 119 companies. Note: The first two authors contributed equally to this manuscript (authorship order is random).
