The shift toward nontraditional mode of operation, namely virtual mode, has introduced dramatic changes that the structures of almost all industries have been altered (Kroenke, 2011). This has resulted in the development of a new global economy that allowed virtual teams to collaborate and communicate instantly regardless of their physical locations (Nydegger & Nydegger, 2010). Whereas virtual teams have various advantages over traditional face-to-face teams such as the ability to overcome the challenges of time, space, and organizational attachment, they also face challenges that their traditional counterparts do not have to deal with.
The immense influence of the shift toward virtualization on global economy and the need to understand virtual teams and challenges they face has increased scholars and practitioners’ interest in virtual teams (O'Leary & Cummings, 2007). Child and McGrath (2001) highlighted four of these challenges that virtual teams face as follows:
Interdependence and the ability to share information and work in teams.
Disembodiment in which it is no longer necessary to be physically present to be there.
Velocity, which is an essential concept in today’s evolving global economy in, which speed makes big difference in competency.
Power, in which economy is shifting from the position that whoever possesses tangible assets, has the power, to the new reality in which those who have the knowledge have the power.