Abstract

The aim of this study is to examine the relationship between implementing a higher level of telework and operational performance and explore the role of Information and Communication Technology (ICT) capability and Management Control (MC) mechanisms. More specifically, the study focuses on the role of four MC mechanisms (action, outcome, personnel and cultural controls), and three dimensions of ICT capabilities (internal use, collaboration and communication) by taking a Dynamic Capability View (DCV). The results suggest that mandated use of telework in response to a crisis (COVID-19 pandemic) has a negative impact on operational performance. However, higher levels of telework increase the scope and use of MC, which in turn improves performance. Accordingly, we conclude that MC positively mediates the negative effect of TW on performance.

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