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Managerial mindset and cognitive bias can be barriers to any transformation strategy. In the case of telework, most employees express willingness to telework, yet, few firms formally enable it during regular business hours. The status quo is a daily commute to the traditional workplace. The purpose of this paper is to test framing interventions designed to harness cognitive biases through choice architecture.

Drawing upon behavioral strategy and prospect theory, this paper presents two studies: quasi-experiments with 146 senior business students and experiments in the field (replication using random assignment and extension) with 84 senior decision makers. Both studies use a one-way between-subjects design and chi-square analysis.

Findings support the proposition that, although cognitive biases can act as barriers to transformation, they can be re-framed through strategic interventions. Specifically, in both studies, there was a drastic increase in adoption simply by changing the way the choice was presented. Findings in the lab were cross-validated in the field. Observed shifts in preferences provide evidence that embedding the right reference point within communications can frame a decision choice more favorably. Findings also support that a bias for an implicitly perceived status quo can be overruled through an explicitly stated reference point.

It is an assumption of behavioral strategy that most individuals simply respond to the gains/loss framing without being influenced by other psychological or contextual factors, and though these effects dissipate through aggregation, it is a limitation nonetheless. Indeed, using an individual construct to explain an organizational phenomenon is a well-debated topic in the field of strategy, with proponents on both sides. The distinguishing factor, here, is that behavioral strategists are only interested in results at the aggregated level.

Practitioners attempting to roll out telework adoption, or any transformation, now have proven strategies for designing frames of reference that intervene against and harness the power of loss aversion and the status quo.

This paper measures micro processes that have an effect at the macro level. It explains systematic aversion to adoption as an aggregation of decision-making behavior that is seemingly subconscious. In doing so, it highlights the impact of bounded rationality perpetuated through social systems, while measuring effective interventions designed to make systematic behavior more predictable.

A novel contribution is made in designing/testing a new frame for systematic resistance to change that frames the status quo as the losing prospect. In this frame, the perceived loss is in the choice not to change, and loss aversion proves to be an effective tool for facilitating systematic change.

Telework is an alternative work relationship with demonstrated positive benefits for individuals and society, yet it has not been implemented with enthusiasm by most organizations. This could be due to the lacking, consolidated evidence for management regarding whether or not telework is a good thing for the firm. The purpose of this paper is to integrate multidisciplinary literature that reports effects of telework on organizational outcomes with the aim of providing a clearer answer to the question: is telework effective for organizations?

Meta‐analytical methods were used, beginning with an interdisciplinary search for effect sizes in eight databases. Limited to scholarly journals and dissertations, results included 991 articles scanned for inclusion criteria. The independent variable is telework, measured as a dichotomous variable. Dependent variables are outcomes of interest to organizations: productivity, retention, turnover intention, commitment, and performance. In total, 22 studies were double coded and meta‐analyzed using Hunter and Schmidt's approach, followed by five exploratory moderator analyses: level of analysis, level of the employee, response rate, proportion of females, and country of the study. Significant results are discussed.

Review and meta analysis of 32 correlations from empirical studies find that there is a small but positive relationship between telework and organizational outcomes. Telework is perceived to increase productivity, secure retention, strengthen organizational commitment, and to improve performance within the organization. In other words, it is indeed beneficial for organizations. All five hypotheses are supported. H1 (productivity), rc=0.23 (k=5, n=620), (95% CI=0.13−0.33). H2 (retention), r=0.10 (k=6, n=1652), (95% CI=0.04−0.16). H3 (commitment), r=0.11 (k=8, n=3144), (95% CI=0.03−0.18); moderator analysis shows sample age is significant (F(1,4)=4.715, p<0.05, R2=0.80). H4 (performance), r=0.16 (k=10, n=2522). H5 (organizational outcomes), r=0.17 (k=19, n=5502), (95% CI=0.1−0.20).

To the authors' knowledge, this is the first meta‐analysis of telework research at the organizational level, providing a unique contribution to the field in filling the gap between research on effects to the individual and society. Additional contributions resulted from the moderator analyses: first, in finding that the relationship between telework and performance is moderated by whether or not the sample was one individual per firm, or many individuals from one; and second, in finding that the relationship between telework and organizational commitment is moderated by age. Thus, the paper provides unique contributions with both scholarly and practical implications.