Publication Type

Journal Article

Version

publishedVersion

Publication Date

7-2025

Abstract

This review examines the effect of physical work environments—the dedicated, tangible spaces where employees carry out their professional tasks—on organizational processes and outcomes. We synthesize decades of research across various disciplines using a conceptual framework that defines physical work environments along three key dimensions: ambience, spatial configuration, and aesthetics. These dimensions are analyzed for their effects on both internal stakeholders, such as employees, and external stakeholders, including clients, suppliers, and investors. Our analysis reveals two major themes in prior research: (1) task accomplishment, which focuses on how physical work environments influence physical and mental health, motivation and attitudes, as well as work processes; and (2) resource position, which explores how these environments impact a firm’s tangible resource position, its ability to attract and retain human resources, as well as shape intangible assets such as organizational culture and reputation. The study also highlights contradictory findings and methodological limitations in existing research and proposes future research agendas. By providing theoretical insights and practical guidelines, this work seeks to guide both scholars and managers in understanding how physical workspaces can be designed to improve organizational outcomes, particularly as firms adapt to evolving work arrangements following the COVID-19 pandemic.

Keywords

attitudes, firm performance, mental health, motivation, office environment, office layout, open plan, organizational space, physical health, productivity, resources, strategy, workplace design, workspaces

Discipline

Organizational Behavior and Theory | Work, Economy and Organizations

Research Areas

Organisational Behaviour and Human Resources

Publication

Journal of Management

Volume

51

Issue

6

First Page

2589

Last Page

2626

ISSN

0149-2063

Identifier

10.1177/01492063251315703

Publisher

SAGE Publications

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Additional URL

https://doi.org/10.1177/01492063251315703

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