Impacts of inter-firm relations on the adoption of remote work: Evidence from a survey in Japan during the COVID-19 pandemic

Abstract

During the COVID-19 pandemic, remote work suddenly attracted attention. This paper focuses on inter-firm relations, as the costs and benefits of introducing remote work are likely to differ depending on the firms’ relationships with other firms. We combine our unique survey on the responses of Japanese manufacturers or wholesalers to the COVID-19 pandemic with transaction relation data. We find that firms sourcing from more suppliers before the pandemic are significantly more likely to adopt remote work during the pandemic even after controlling for firm size. Wholesalers selling to more customers appear to be less likely to shift to remote work.