The Effect of Workplace Design on Employee Engagement, Collaborative Capability, and on Perceived Work Performance in Coworking Spaces

Abstract

Coworking spaces phenomenon is rapidly growing across the countries of North America, Europe, and Asia. Owing to its functional work environment, it offers co-workers a collaborative atmosphere that makes them more involved at work. The research study aims to describe the causal relationship of workplace design to perceived work performance through the mediating roles of employee engagement and collaborative capability with the use of Structural Equation Modeling (SEM).The total of 350 co-workers aged 18-60 years old, from 27 different co-working spaces in Metro Manila, Philippines participated in the study. The findings of this research revealed that workplace design has no direct effect on perceived work performance; however, perceived work performance improves when coworkers are more engaged and have better collaborative capability. Nonetheless, the rest of the hypothesized premises were affirmed in the result of this study. This paper can help the HR managers and the business centers to create a more flexible and constructive workplace setting for their employees. Further, the results can be used as a basis for the fundamental shift of the traditional workspace into a new creative workplace.