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A NEW BUSINESS MODEL: COWORKING OFFICES
Dr. Öğr. Üyesi Onur BaĢar ÖZBOZKURT
Tarsus Üniversitesi, onurozbozkurt@tarsus.edu.tr
ABSTRACT
As one of the most notable workplace trends of the last decade, the coworking business
model of leasing offices have been exponentially growing and refer that firms and
freelancers abandon their permanent office willingness, and helps to share knowledge and
information independently among individuals. In this regard, coworking allows individuals
from various backgrounds to work unitedly in a common space. In other words, coworking
spaces represent an office atmosphere that has a heterogeneous group of worker or
freelancer via creating networking opportunities by social interaction, and come up with
myriad advantages such as cutting costs, gaining flexibility and new perspectives. From this
point of view, the present study aims at examining the systematic literature review of the
rising phenomenon of coworking spaces as a new business trend, and exploring and
evaluating the evolution process of coworking spaces in detail by contributing the related
literature and practices in the business environment. In this frame, it has been foreseen that
coworking spaces as innovative business models will continue to be on the radar of
entrepreneurs worldwide in the future.
Keywords: Coworking, coworking spaces, Business Model, Innovation, Flexibility.
YENĠ BĠR Ġġ MODELĠ: PAYLAġIMLI OFĠSLER
ÖZET
Son on yılın en dikkat çeken iĢ yeri trendlerinden biri ve kiralanabilir ofisler olan paylaĢımlı
(ortak çalıĢma) iĢ modeli, giderek büyümekte ve firmaların ve serbest çalıĢanların daimi ofis
isteklerinden vazgeçerek, bilginin, bireyler arasında bağımsız olarak paylaĢılmasına
yardımcı olmaktadır. Bu bağlamda, ortak çalıĢma, çeĢitli arka planı bulunan bireylerin, ortak
bir alanda, birlikte çalıĢmalarına olanak sağlamaktadır. Farklı bir ifadeyle, paylaĢımlı ofisler,
sosyal etkileĢim yoluyla ağ oluĢturma imkânı sağlayarak, heterojen bir çalıĢan grup ve/veya
serbest meslek sahibi olan bireylerin bulunduğu bir ofis atmosferini temsil etmekte olup;
maliyetleri düĢürme, esneklik ve yeni bakıĢ açısı kazandırma gibi sayısız avantajları
beraberinde getirmektedir. Buradan hareketle, bu çalıĢma, ilgili literatür ve iĢ çevresindeki
uygulamalara katkı sağlaması doğrultusunda, dikkat çeken bir olgu ve yeni bir iĢletme
trendi olan paylaĢımlı ofislerin, sistematik olarak literatür taramasını gerçekleĢtirmeyi ve
paylaĢımlı ofislerin değiĢim sürecini detaylı olarak araĢtırmayı ve değerlendirmeyi
amaçlamaktadır. Bu çerçevede, yenilikçi iĢ modelleri olan paylaĢımlı ofislerin, gelecekte,
dünya genelinde, giriĢimcilerin radarında olacağı açıkta öngörülmektedir.
Anahtar Kelimeler: Ortak çalıĢma, paylaĢımlı ofis alanları, iĢ modeli, yenilik, esneklik.
INTRODUCTION
Entrepreneurs and innovators insist “success as usual”, exploring emerging technologies and
new business models. In this sense, they try to keep the big picture in mind and are avid of
being too efficient and too optimized. From this point of view, a new business model of

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coworking is expeditiously became a global, preponderantly urban, phenomenon specifically
among autonomous creative individuals and independent professionals, self-employed
people and micro-businesses (Brown, 2017: 113). In this regard, it has been revealed a new
kind of business model has led to a transformation within the way people work together,
engage and cooperate (Leclercq-Vandelannoitte & Isaac, 2016: 4).
Besides, coworking spaces have been seen as a recent phenomenon for those who are free-
lance, own a small-sized business, and or enjoy working in a shared, community setting
(Lazo, 2018: 2). Additionally, coworking spaces have been increasing exponentially in
worldwide, and enable fundamental business infrastructure, the chance for communal
interaction (Gerdenitsch, Scheel, Andorfer & Korunka, 2016: 1). Namely, coworking spaces
are seen as shared places for independent professional workers (Spinuzzi, 2012: 401).
Likewise, coworking spaces are described as localized spaces where independent
professional workers interact with sharing common resources and are free to disseminate
their information with the rest of the community (Capdevila, 2013: 3).
Furthermore, it has been assumed that coworking spaces consist of four groups that
identified as basic facilities including coffee, tea, and other drinks, free Wi-Fi; office
equipment containing, projector, printing, and whiteboard; business support comprising
business address, formal mail-box, a direct line, and access card; and lastly, supporting
activities including lounge places and workshops (Vanichvatana, 2018: 379). From this point
of view, the present study aims at examining the systematic literature review of a rising
phenomenon of coworking spaces as a new business trend and exploring and evaluating the
evolution process of coworking spaces in detail by contributing the related literature and
practices in the business environment.
1. COWORKING BUSINESS MODEL
The most notable workplace trends especially since 2000, the coworking business model of
leasing offices has been exponentially growing and refers to firms and freelancers abandon
their permanent office willingness and helps to share knowledge and information
independently among individuals. In this sense, the coworking business model means an
organizational form that by its own nature facilitates inter-firm cooperation (Capdevila, 2014:
1).
Applying the business model perspective to the phenomenon of coworking-spaces, at the
core, coworking-spaces build a class of new business models providing a novelty centered
activity systems that adopt new activities (content: e.g. space, infrastructure, services) and/or
links the activities (structure of renting out resources and providing services), and/or govern
these activities in a new way (e.g. service packages, linkages to incumbent firms). However,
this new concept of coworking-spaces business models ranges from more efficiency-centered
concepts to novelty-centered designs. In this frame, coworking-spaces allow the pursuit of
cultural/social projects but primarily of their users‟ business models (Bouncken, Clauss &
Reuschl, 2016: 3).
Furthermore, the coworking business model shows itself through the fact that innovative
business ideas and models are creating whole new branches of business, fundamentally
changing them, or even making some disappear (Schuermann, 2014: 14). In this sense, the
coworking business model is directly related to community, particularly, the cooperation
that occurs within professional workers and communities (Spinuzzi, Bodrožić, Scaratti &
Ivaldi, 2018: 114). In other words, communities of coworking include co-located groups of
self-employed individuals, independent professionals, remote workers, or entrepreneurs-
where members do their own work simultaneously (Garrett, Spreitzer & Bacevice, 2014: 1).
Additionally, coworking precisely refers to “collaborative lifestyles”, hence individuals form

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a community where they interact and share knowledge in a collaborative space (Petch, 2015:
6).
Uda (2013: 2) highlights that coworking business model alludes to “a different type of
working in which individuals come together within an organization for promoting value
while sharing knowledge and wisdom in terms of interaction and collaboration under the
circumstances of users‟ or members‟ preferences. Furthermore, Bouncken & Reuschl (2016:
320) point out while the concept of coworking comprises „„work‟‟, members of coworking
spaces have opportunities to look for leisure and socio-cultural wishes in addition to the
professional work, compounding both components. Therefore, the term of coworking
provides independent and spirited conjunctions of task-related and leisure aim besides
combinations of economic and communal points. Accordingly, as Šviráková, Soukalová,
Bednář & Danko (2014: 1685) state that coworking spaces enable the users of the productive
and creative group of individuals with a chance to exchange ideas and knowledge. Namely,
this business spaces describe an appropriate place in terms of launching and maintaining
spin-off organizations that commercialize intellectual property.
2. COWORKING SPACES
Conceptualizing an emerging phenomenon of coworking and that kind of space model as a
practice remains at the core of transforming post-industrial work, and coworking a
manifestation (Jakonen, Kivinen, Salovaara & Hirkman, 2017: 235). Thus, coworking spaces
can be identified as strengthening as globally rising and shining trend in a network business
environment where the term of competitiveness is related to knowledge and sustainable
innovation (Castilho & Quandt, 2017b: 1). In this respect, coworking spaces refer to localized
places in which professionals that require autonomy, work with common resources and are
free to interact and share their knowledge with other professionals (Capdevila, 2013: 3).
Gandini (2015: 195) highlights that coworking spaces mean common workplaces benefitted
by various kinds of professional knowledge workers, generally self-employed individuals,
working in assorted levels of specialization in the vast domain of the knowledge industry.
Similarly, Vidaillet & Bousalham (2017: 3) state that coworking spaces can be specified as
working together, generally are free-lancers, autonomous professional entrepreneurs or
workers who have own special work tools and own projects, and are provided with a
common working place and community, in return for a commonly low contribution
proportional to the amount of time they spend in the space.
Capdevila (2014: 2) emphasizes that this kind of spaces are described as the co-location of
business professionals that engage in various sorts of cooperation, guiding in several
circumstances to the rise of a deeply-collaborative community of self-employed individuals,
professional workers and entrepreneurs. Moreover, it has been presumed that the inter-firm
collaboration in coworking spaces are defined as an intermediate organizational form. In
other words, Waters-Lynch & Potts (2017: 420) state coworking spaces can be assumed as
common office business environments that include various professionals who pay a fee to
locate as their workspaces, to engage in communal interaction and cooperate on shared
endeavors. Bueno, Rodríguez-Baltanás & Gallego (2018: 452) briefly state that these common
workplaces are shared by professionals who are not workers of the same organization.
Mohora (2019: 979) describes coworking spaces form communities, enabling common places
and territories to its members by providing a new functional and comfortable business
model for creativity, productivity, and building of professional networks. Additionally,
Cheah & Ho (2019: 4) argue that coworking spaces are shaped to be highly open and
comprehensive. The spaces are shared and, in this sense, designed by individuals from
various backgrounds and fulfilling unique business roles such as entrepreneurs, freelancers,

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artists, researchers, students etc. Namely, as Pohler (2012: 65) stresses that coworking spaces
can be seen as a spatial manifestation of new work arrangements and the ways people
approach them.
Bouncken, Laudien, Fredrich & Görmar (2017: 386) assume that entrepreneurs and
professional workers have an opportunity to contemplate and argue their specific business
ideas with other members and individuals via a collective inspiration from each other to
develop their concepts in coworking spaces. Whilst exchanging ideas and knowledge,
learning, and commonly working enhance the entrepreneurial value creation, at the same
time it bears competitive risks of value appropriation. From this point of view, as Bouncken,
Aslam & Reuschl (2018: 135) emphasize that these spaces enable a dynamic, innovative and
originative atmosphere to entrepreneurs and working place to run their activities of business
life while cooperating and interacting with the rest of other entrepreneurs.
2.1. AMENITIES OF COWORKING SPACES
Coworking spaces allow a workstation accordingly a specific amount of fee schedule exactly
like those diverse professional workers from different backgrounds, share a regular working
atmosphere. Coworking spaces commonly include a wide-open designed place,
accompanied by meeting rooms, private offices, cafés or free kitchen (Robelski, Keller, Harth
& Mache, 2019: 3). In addition to that, the coworking activities tend to build around the
materiality of the space that includes the desks and the other facilities (e.g., free Wi-Fi
accessibility and kitchen) are believed as vital components to fulfill their certain work (Ivaldi
& Scaratti, 2019: 132). Likewise, for adequate workflow, such tools like wireless printers,
scanner, whiteboards, presentation, and conference tools are provided. Users also have
access to the workplace kitchen appliances such as the refrigerator, microwave, and coffee or
tea. The amenities are offered for all users and membership types (Lazo, 2018: 89).
Besides, Kojo & Nenonen (2014b: 343) identify six fundamental types of coworking spaces
related to the innovative and new business model and degree of member access, such as
public offices, third places, collaboration hubs, coworking hotels, and incubators. Similarly,
Weijs-Perrée, Van De Koevering, Appel-Meulenbroek & Arentze (2018: 536) state that the
classical design of coworking spaces is an open-floor design with shared, common
workplaces in which coworkers comfortably cooperate and interact with other members.
This type of multi-tenant place presents, compared with ordinary multi-tenant offices, more
informal amenities like 24/7 free access, internet accessibility, a kitchen, coffee corners,
printing and copying amenities. In this regard, Table 1 demonstrates the major amenities of
coworking spaces.
Table 1. The Major Amenities of Coworking Spaces
Location Collaboration and Openness
Location accessibility
Type of location
Collaborative spaces
Meeting and event rooms
Informal places, couches and sofas
Kitchen
Office Exterior and Division
Design and architecture
Lay-out and subdivision of the building
Lightning in space
Office Décor Community and Sustainability

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Appearance aesthetics
Appearance of the place
Art and photography
Variety of workspaces
Customized social network
Ecological sustainable
Network events/training/workshops
Organizational sustainable
Virtual organizational platform
Social events
Presentation
Facilities and Services
Booking system for spaces and work spots
Canteen/restaurant
Cleaning and clothing services
Coffee and tea vending machine
Coworking host (stimulates interaction)
24/7 accessibility
Reception and helpdesk
Accessibility
Variety of the tenants
Lease arrangements
Source: Adapted from Van de Koevering (2017: 26)
2.2. GROWTH STRATEGIES FOR COWORKING SPACES
The concept is evolving expeditiously worldwide and the last few years have seen crucial
demand drivers and healthy supply push provided by the deep expansion of coworking
operators. Flexibility, plug and play simplicity, the necessity to launch innovation and a
sense of community for employees are sparking organizational interest in flexible space
solutions (JLL, 2019: 4). A better comprehension of cooperation abilities in the frame of
coworking spaces might boost, for example, a various social network with some special
socialization opportunities or through some community building strategies that sustain
higher levels of motivation for working together. This circumstance emphasizes the
significance of new sources of firm competitiveness through the examination of elements and
dimensions regarding cooperation in coworking spaces (Castilho & Quandt, 2017a: 34). In
this respect, coworking spaces operators implement strategies that engage with
organizations to maintain the additional facilities and built-in flexibility which are
progressively vital to attracting and retaining talent in current competitive marketplace
(Coworkmed, 2018: 9).
Moreover, as Özbozkurt & Ay (2019: 355-369) identify that coworking spaces managers‟
strategies are based especially on support differentiation, corporate image and quality
differentiation, design/architecture differentiation, price differentiation owing to increasing
spaces worldwide. Besides, coworking spaces integration within the organization‟s office
workspace strategy, either by leasing portions of an off-site coworking space to
accommodate certain worker groups or by providing and creating a coworking atmosphere
on-site in an existing corporate-owned or leased office (www.knoll.com, Date retrieved:
19.10.2019).
On the other hand, the growth strategies of coworking spaces are divided into three as new
businesses that figure out brand-new businesses, an expansion that refers to companies
initiating their second location or more, and chains that point out large coworking chains
and franchises (see Figure 1 below). Additionally, of the new coworking spaces that launch
each year, brand-new businesses make up the bulk of it at 65.3% whilst chains and second or
more locations make up the remaining 34.7% which expresses that whilst existing companies
are thriving, most of the industry's growth still comes from firms, independent free-lancers

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or business operators and entrepreneurs entering the market for the first time
(www.coworkingresources.org, Date retrieved: 10.09.2019).
Figure 1. The Growth Strategies of Coworking Spaces
Source: www.coworkingresources.org/blog/key-figures-coworking-growth, Date retrieved:
10.09.2019.
2.3. GLOBAL GROWTH OF COWORKING SPACES
“Coworking” was coined first time by in 1999 was basically different from usual
organizations where work was engaged in hierarchical structures and under constant
observation and assessment-circumstances that led to competition rather than cooperation.
The major model of “coworking” referred to working together commonly, and various
coworking spaces opened their doors in the following years (Rief, Stiefel, Weiss, Nagy &
Johnson, 2016: 5). In this sense, Spiral Muse Coworking group was the first coworking space
built by Brad Neuberg in San Francisco in 2005 (Rus & Orel, 2015: 1020; Gandini, 2016: 98;
Waters-Lynch, Potts, Butcher, Dodson & Hurley, 2016: 6; Josef & Back, 2018: 491). From this
point of view, the exponential growth of coworking spaces have been demonstrated below
(see Table 2).
Table 2. Coworking Spaces Trend in Chronological Order
1999 DeKoven coined the term “coworking” to identify a method that would facilitate
collaborative work and business meetings coordinated by computers.
2005 The first official “coworking space” has launched its door in San Francisco by the
programmer Brad Neuberg as a reaction to “unsocial” business centers and the
unproductive work-life at a home office.
2006 The Hat Factory launched as the first full-time space that was called a “coworking
space”.
2007 For the first time, the term “coworking” became a trend on Google's database.
2010 The first coworking conference took place at the Hub Brussels.
2012 More than 2000 coworking spaces are found worldwide.
2013 More than 100,000 people worked at coworking spaces. Additionally, 3,000th
coworking space opened.
2015 Coworking spaces reached the number of 7,805.
2016 Coworking spaces reached the number of 11,100.
65,3%
26,1%
8,6%
New Businesses
Expansion
Chains

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Source: Adapted and retrieved from www.deskmag.com, Date retrieved: 16.10.2019.
Taking into consideration of growing pace with which coworking initiatives have spread
across the world has been breathtaking (Rus & Orel, 2015: 1025). In other words, coworking
spaces have grown rapidly, and the number of shared workspaces nearly doubles every year
and serves an exponentially broad community of members worldwide as illustrated in
Figure 2 below, since 2017. The growth figures for 2019 show less expansion but indicate the
industry‟s focus on growing existing spaces by increasing occupancy rate and profitability.
Also, the number of coworking spaces worldwide is estimated to soon reach 49,500 by 2022,
an increase of 49% from 2019 (www.coworkingresources.org, Date retrieved: 10.09.2019).
Figure 2. Number of Flexible Workspaces Globally
Source: Gcuc, Coworking Growth, 2019-2022 Forecast, (2019). https://gcuc.co/wp-
content/uploads/2019/04/GCUC-Coworking-Growth-2019–2022-Forecast.pdf, Date
Retrieved: 14.10.2019.
Besides, it has been expected the amount number of coworking users will increase from 1.74
million in 2017 to 5.1 million in 2022 (see Figure 3 below). Additionally, the rapid growth of
coworking user is owing to coworking spaces expansion in square footage as well as users
per square foot since new spaces tend to be much larger than older spaces, and existing
spaces are expanding by adding more space and members, and coworking facility operators
continue to find out how to qualified services achieve to members per square foot of space
(www.usa.gcuc.co, Date retrieved: 14.10.2019).
26000
29095
33072
37840
43100
49500
0
10000
20000
30000
40000
50000
60000
2017 2018 2019 2020 2021 2022

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Figure 3. Number of Coworking Spaces Members Globally
Source: https://usa.gcuc.co/2018-global-coworking-forecast-30432-spaces-5-1-million-
members-2022/, Date retrieved: 14.10.2019.
From this point of view, coworking spaces enhance growth, performance, and creativity
(www.eu.haworth.com, Date retrieved: 14.10.2019). In this respect, the rapid growth of
coworking stems from a confluence of economic, technological, communal, economic, and
demographic elements consisting of the emergence of the contingent workforce, renewed
interest in entrepreneurship and small business ownership, a rift between employee-
employer agreement, consumerization, growth of the sharing business activities, changing
and improving business privileges, technological advance, the scent of opportunity
(www.workplaceinsight.net, Date retrieved: 14.10.2019).
RESULTS
Coworking spaces are a phenomenon that has recently emerged as one of the means of
supporting the entrepreneurship ecosystem. This flexible model of work finds its application
mainly in the business of individuals and small start-up companies (Racek, 2015: 29). The
rising popularity of cooperation and information technologies within the workspaces besides
changing global business circumstances and the requisites of sociability have revealed a
necessity for flexible office locations that encourage mobilization and collaboration working
(Kojo & Nenonen, 2014a: 164). In this sense, as creative fields, coworking spaces are sites of
interaction. By promoting knowledge production, access to appropriate knowledge and
communal interaction, they provide innovation (Braune, 2019: 12).
Considerably, coworking spaces as a revolutionizing business model are changing how
independent professionals and individuals from different backgrounds, work and share the
knowledge, create value, and productivity via working and collaborating in a commonplace.
Additionally, coworking spaces have grown critically, and the number of shared workspaces
nearly doubles every year and serves an exponentially broad community of members
worldwide. From this point of view, a tremendous demand by professional workers will
increase thanks to its myriad advantages. Thus, the number of coworking spaces will also
continue to its gorgeous rise in the following decades. Taking into consideration of this
prediction, it has been recommended to the operators to implement more innovative and
1.740.000
2.300.000
3.100.000
3.800.000
4.500.000
5.100.000
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
2017 2018 2019 2020 2021 2022

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unique strategies while entering to the market to strengthen their competitiveness due to the
intense competition atmosphere. On the other hand, researchers should focus on exploring
new and better amenities in coworking spaces for more satisfied members, and sustainability
of the spaces and guiding entrepreneurs.
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