Flexible Work Arrangements and MNC Employees’ Job Engagement:The Moderating Effects of Institutional Factors

Flexible work arrangements (FWAs), especially remote work, are in the spotlight during the COVID-19 pandemic. The use of FWAs will likely continue long even after the pandemic ends. Accordingly, the importance of understanding FWAs is also greater than ever. This study aimed to examine the effectiveness of FWAs by analyzing the effect of FWAs on employees’ job engagement. This study also investigated the roles of institutional factors, labor market efficiency, female labor force participation, and technological advancement, in the relationship between FWAs and job engagement. This study used the “Generations of Talent Study” database collected by Sloan Center at Boston College, the World Economic Forum database, and the World Bank database for testing the hypotheses. The total sample included 7,701 employees working in multinational corporations in nine countries, the US, China, India, Japan, Brazil, Mexico, the UK, the Netherlands and Spain. The results showed that the implementation of FWAs increased employees’ job engagement. The results further revealed that the institutional factors, labor market efficiency, female labor force participation and technological advancement, positively moderated the effect of FWAs on job engagement.