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TopVirtual Organizations
Although organizational research has a long and rich history of examining the so-called “brick and mortar” organizations (see Katzell and Austin, 1992 for a historical review), the emergence and implementation of new communication technologies has influenced organizational functioning such that nearly all organizations have at least some component of virtual communication allowing them to complete interdependent tasks despite “locational, temporal, and relational boundaries” (Martins, Gilson, & Maynard, 2004, p. 808). That is, individuals and teams within organizations no longer need to be face-to-face to accomplish organizational goals (Kozlowski & Bradford, 2001). Accordingly, DeSanctis and Monge (1999) modified the basic definition of organizations to accommodate virtual organizations, or organizations that function entirely in virtual space. These researchers define a virtual organization as:
…a collection of geographically distributed, functionally and/or culturally diverse entities that are linked by electronic forms of communication and rely on lateral, dynamic relationships for coordination. Despite its diffuse nature, a common identity holds the organization together in the minds of members, customers, or other constituents. (DeSanctis & Monge, 1999, p. 693)
The virtual organization’s ability to transcend geographic and temporal boundaries affords several benefits for organizations as well as the individuals within the organization. For instance, the use of virtual communications allows individuals increased flexibility in work schedules allowing for greater work-life balance (Townsend, DeMarie, & Hendrickson, 1998). For organizations, virtual teamwork affords the opportunities that previously might not have been feasible. For instance, organizations might experience fewer challenges in establishing high-quality teams of individuals, and thus realize the increased productivity of collaborative efforts, that previously were limited by geographic location. Also, organizations might use technology to gain access to expertise that was once inaccessible (i.e., individuals outside the organization), thus maximizing the quality of their information and decisions. Given these benefits, it is perhaps not surprising that virtual communications are quickly becoming more prevalent within organizations (Martins et al., 2004).
Despite their apparent popularity, virtual communications are not without their drawbacks. The reduced availability of social cues and reliance upon technology tools might introduce new challenges beyond those of traditional organizations. Although geographic dispersion can afford an organization a number of previously unavailable benefits, they come with the cost of new challenges to the development of relationships within organizations. The development of trust—a key component in relationship development—has consistently been identified as a major challenge for virtual teams and organizations (Jarvenpaa, Knoll, & Leidner, 1998; Pauleen, 2003; Powell, Piccoli, & Ives, 2004).