The Effects of Remote Work on Labor Productivity in the Service Sector

Abstract

This study examines the effects of remote work on labor productivity in Thailand’s service
sector. Using a quantitative, cross-sectional design, data were collected from 400 employees
across multiple service industries, including finance, education, ICT, and professional services.
Structured questionnaires measured remote work intensity, labor productivity, and
organizational support. Data were analyzed using descriptive statistics, correlation analysis,
confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results
indicate that remote work has a significant positive effect on labor productivity (β = 0.41, p <
0.001), and organizational support both directly influences productivity (β = 0.52, p < 0.001)
and partially mediates the relationship between remote work and productivity (β = 0.21, p <
0.001). These findings highlight that productivity gains from remote work are maximized when
supported by digital tools, training, and clear management practices. The study provides
empirical evidence for organizations and policymakers to design effective remote work policies
in the Thai service sector, ensuring operational efficiency, employee satisfaction, and
sustainable workforce performance.