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About Annual Meeting
Retrospective and panel data of work-unit functioning, provided by managers within a large employer in the finance and insurance supersector, are used to determine relationships of flexible work arrangements (FWAs) with evaluations of team performance and interpersonal dynamics. Contrasting expectations, based on adaptation theory and institutional theory, are explored. Higher frequency of FWA use was associated with positive, but modest, differences in work-unit functioning. Consistent with adaptation theory, initial expansion in FWA use corresponded with improvements in team functioning, and these enhancements endured over the course of 19 months. However, later increases alternate location use corresponded with diminished ratings of team’s performance in respect to responding to problems quickly and overall performance, suggesting limits to the benefits of expanded use. In comparison to adaptation theory, institutional theory provides a better means of understanding the consequences of curtailing use of FWAs, which corresponded with declines in team functioning.