Space for creative and entrepreneurial activities? Coworking spaces in the entrepreneurial landscape of an economically challenged region A thesis submitted to Cardiff Metropolitan University for the degree of Doctor of Philosophy By Anita Fuzi Supervised by Professor Nick Clifton and Dr. Gareth Loudon 2016 Cardiff School of Management Cardiff Metropolitan University Western Avenue Cardiff, UK, CF5 2YB Declaration DECLARATION I declare that this work has not previously been accepted in substance for any degree and is not being concurrently submitted for any other degree. I further declare that this thesis is the result of my own independent work and investigation, except where otherwise was stated (a bibliography is appended). Finally, I hereby give consent for my thesis, if accepted, to be available for photocopying, for inter-library loan, and for the title and abstract to be made available to outside organisations. Anita Fuzi (Candidate) 20th December 2016 i Acknowledgements ACKNOWLEDGEMENTS On the very first page of this dissertation, I would like to acknowledge and thank all the people who have supported me during this journey, shared the joy and pain of doing this research, and helped me to complete this thesis. First and foremost, I would like to warmly thank my family for all their love and support that allowed me to start, and get to the end of, this journey. For my parents and grandparents who raised me with love, encouraged me in all of my pursuits, and inspired me to follow my dreams. Mom and Dad: you are my twin pillars, without whom I could not stand. Without my family this journey would not have been possible. I would like to express my highest and heartfelt gratitude to my Director of Studies, Professor Nick Clifton, and my Supervisor, Dr. Gareth Loudon for their contributions of time, patience, guidance, encouragement, advice and support in many uncountable ways to make my PhD experience a successful and unforgettable journey. I feel privileged to have met them; having them as not only my supervisors but also my mentors was the most important part of my academic development. They taught me self-confidence and persistence which I will certainly carry forward in my future adventures. Nick and Gareth: I will always be grateful to you for believing in me three years ago and helping to make a dream come true. I am also thankful to Professor Nick Rich, a mentor and friend, for his contribution to my personal and professional development, and for providing me with help whenever I needed. I am especially grateful to Dr. Catherine Wilson and Suzanne Jones whose encouragement has always been a great source of motivation to overcome difficulties during my journey. I would also like to thank the CSM Research team, especially Louise Ballantyne, Adriana Snae and Victoria Rees who always found time to provide me with administrative guidance beyond their duties. I am grateful to my PhD partners in crime for the continuous encouragement and support they have given me throughout my time at Cardiff Metropolitan University. Special thanks to Joana Malato, Mohamed Shararah, Kevin McLafferty, Nasser Albimani and Kasia Minor for their effort and the time that they spent listening to my concerns, cheering me up in difficult times, and providing help whenever I needed it. ii Acknowledgements I also would like to thank all the coworking space founders and operators for opening their doors, introducing me to their communities, and providing me with many opportunities to carry out primary research. I also appreciate the comments, insights, and ideas coworking space operators, members, former coworkers and many others in the Cardiff business community provided; their insights and perceptions are the foundation of this research study. During my PhD journey I was very fortunate to meet many inspirational people within the Welsh business community. I would like to express my sincere appreciation especially to Gareth I. Jones and Neil Cocker for their support, enthusiasm and spirit. Last but not least, I would like to express my heartfelt gratitude to my friends, especially Adrienn Andersch, Eszter Magyar, László Horváth, Judit Steinbach, Kinga Török, Bernadett Bella, Bálint Vasvári, Melinda Kunya-Pató, Eszter Rákli-Szabados, Melinda Hajdu-Smahó, Renáta Sóska, Ádám Végh, Tamás Komáromi and Ina Matteis, amongst many others who provided me with love, inspiration and confidence. Special mention to the ‘coolest cat in town’, Déborah Reeve who filled my last year with joy and laughter, and was there with me in the final rush. Thank you for your encouragement, support and the many unforgettable memories we had together in Cardiff. Another particular thank you goes to Sumanta Barua, my first friend in Cardiff, who was fundamental in supporting me during stressful moments, and never forgot about cheering me up and reminding me how far I had come and how much I had achieved. Thanks to Mary and Robert Slater for providing me a home during the last few months of my stay in Cardiff. Your love is appreciated. Thank you to all my lovely friends for always being there for me! iii Abstract ABSTRACT Coworking is an emerging form of work organisation, whereby independent entrepreneurs, micro-businesses and freelancers ‘work alone together’ in shared spaces, in which the emphasis is on community, relationships, productivity and creativity. Accounts of coworking are widespread, but empirical studies are sparse, particularly those which bring together a range of perspectives, i.e. the providers, current users, and potential users, and consider its role, actual use and positive affect. Existing work is largely focused on metropolitan areas of Europe and the United States. To this end, this thesis addresses the gap in current knowledge by exploring whether coworking is an effective model for increasing creative and entrepreneurial activities in an economically challenged region, using South Wales as a reference region. The thesis furthermore seeks to advance understanding of how coworking spaces should be designed to maximise creative and entrepreneurial activities in economically challenged regions. The research questions of the study are addressed through a three-phase approach, using a mixed methods research design. The literature is reviewed through the lens of Williams’ ‘interaction model for creative behaviour’, which emphasises three key factors for enhancing creative activities in a creative workplace: the skills of its people; the physical environment; and the social (cultural) environment. The roles and relevance of these three factors in enhancing creative activities within a coworking organisation are studied through 31 thematic interviews with coworking space providers in four geographical areas (USA, Europe, UK, and South Wales), and 142 questionnaire responses from current coworkers and potential users of such spaces located in the Cardiff City Region. The findings of this thesis indicate that coworking is viewed as significantly beneficial for performance, across the range of areas investigated - from network growth to higher levels of creativity, motivation and productivity in the context of an economically challenged region. Moreover, the results suggest that creative and entrepreneurial activities in the context of an economically challenged region can only be maximised through the combination of the three factors identified, along with the pre-studied particularities of a given region’s societal and economical context. iv Table of Contents TABLE OF CONTENTS Chapter One: Introduction 1-1 1.1 Introduction 1-2 1.2 Personal Motivation 1-5 1.3 Rationale for the Research 1-6 1.4 Research Aims and Objectives 1-8 1.5 Research Approach 1-9 1.6 Case Study Context: The Cardiff City Region 1-11 1.7 Structure of the Thesis 1-13 Chapter Two: Theoretical Background Review 2-1 2.1 Introduction 2-2 2.2 Creativity and the Creative Individual 2-2 2.3 The Physical Space Enabling Creativity 2-4 2.4 The Social-organisational Context for Creativity 2-5 2.5 Interaction Model for Creative Behaviour 2-7 2.6 Engage/Disengage Model Enabling Various Behaviours 2-8 2.7 Entrepreneurial Creativity and the Entrepreneurial Individual 2-10 2.8 Contextual Factors that Shape and Support Entrepreneurial Activities 2-13 2.9 Summary 2-15 Chapter Three: An Overview of Work Trends 3-2 3.1 Introduction 3-2 3.2 The Evolution of the Corporate Office 3-3 3.3 Home is Where the Work is 3-9 3.4 Rise of the Independent Mobile Workers and Home-Based Entrepreneurs 3-11 3.5 New Generations in Focus 3-15 3.6 Summary 3-17 Chapter Four: Review of the Background Literature to Coworking 4-1 v Table of Contents 4.1 Introduction 4-2 4.2 A Spectrum of ‘Collaborative Community Workspaces’ – the Spaces in which we Work with Others and their Variations 4-3 4.3 The Promise of ‘Collaborative Community Workspaces’ 4-13 4.4 The Coworking Phenomenon 4-17 4.4.1 The History of Coworking Spaces 4-18 4.4.2 Unpacking the Term 4-21 4.5 The Coworking Organisation – and the Underlying Model 4-23 4.5.1 The Coworking Model 4-23 4.5.2 Coworking Demographics 4-29 4.5.3 Benefits of Coworking for Creative and Entrepreneurial Activities 4-30 4.5.4 Role of the Host in the Space 4-36 4.5.5 Coworking in a Corporate Environment 4-39 4.6 Summary 4-42 Chapter Five: Setting the Scene: South Wales and the Cardiff City Region 5-1 5.1 Introduction 5-2 5.2 Policy Context of Economic Development and Entrepreneurship in Wales 5-4 5.3 Cardiff Capital Region as the Emerging Scale of Policy Intervention 5-9 5.4 Labour Market Characteristics