A recent study has discovered that co-working spaces may restrict the creativity and innovation of new businesses. These communal working environments, which surged in popularity following the pandemic, initially seemed to encourage collaboration. However, over time, they limit the development of collaborative practices.

The research conducted by Bayes Business School focused on the emergence of collaborative practices within co-working environments, using Level 39 as a case study. Located in Canary Wharf’s financial district and among Europe’s largest co-working spaces, Level 39 predominantly serves the tech and fintech industries.

The study’s findings indicate that the casual atmosphere of such spaces initially fosters exploration among startups. Yet, it prevents the evolution of deeper collaborations. Although these environments facilitate networking and social interactions through shared kitchens, lounges, and breakout areas, the benefits of collaboration were minimal. Companies reported that interactions became increasingly superficial and forced over time. Moreover, as the space prioritized occupancy and scalability to accommodate its growth, it negatively affected the spatial layout and the ability to foster customized relationships with startups.

Professor Stefan Haefliger, the study’s lead author from Bayes Business School, researched alongside former Bayes PhD student Ghassan Yacoub. They emphasize the findings’ implications for those managing and hosting co-working spaces. The study suggests a catalyst is necessary—individuals who promote and support activities that enhance interaction and foster cooperation—to facilitate meaningful cross-working.

Professor Haefliger stressed the transformative impact of co-working spaces on our conventional understanding of organizational boundaries. He underscored the role of space hosts and users in creating an environment conducive to flourishing partnerships and innovative ideas. For startups, leveraging initial interactions is crucial for collaborative success, and managers are essential catalysts in fostering these partnerships.

In the post-pandemic landscape, the uncertainty of space usage and the formation of collaborative teams suggest that workspace managers need to allow for experimentation and flexibility.

The research also reflects Dubai’s unique position in the evolving work environment. As a global collaboration hub, Dubai presents an opportunity to lead by example in adapting workspaces to modern collaborative needs, potentially inspiring other locations to embrace change.

This study highlights the dynamic between co-working spaces and the innovative processes of new businesses, suggesting a need for adaptability and strategic support to effectively nurture creativity and collaboration.

More information: Stefan Haefliger et al, Coworking spaces and collaborative practices, Organization. DOI: 10.1177/13505084221074037

Journal information: Organization Provided by City, University of London