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Coordination and Virtualization:
The Role of Electronic Networks and Personal Relationships
Carnegie Mellon University
Charles Steinfield
Michigan State University
Alice Chan
Cornell University
Brian Butler
Carnegie Mellon University
Anne Hoag
Pennsylvania State University
One view holds that organizations are virtual to the extent
that they outsource key components of their production processes,
and that electronic networks make it easier to do this. The goal
of the present paper is to examine explicitly the effects that use
of electronic networks for transactions with suppliers has on firms'
degree of virtualization. In so doing, we also highlight factors that
influence the use of networks for coordination with suppliers, and
the impact such use has on coordination success. Contrary to much
recent speculation, the use of electronic networks for transactions
was not associated with increased outsourcing, but rather greater
dependence on internal production. Moreover, the use of interpersonal
relationships for coordination, which can be thought of as an
alternative to electronic network use, was positively associated
with greater network use. Surprisingly, use of electronic networks
was negatively associated with such outcomes as order quality and
efficiency, and satisfaction with suppliers, while more reliance
on personal linkages was associated with better outcomes and
mitigated the negative consequence of using electronic networks.
Network Structure in Virtual Organizations
Manju K. Ahuja
Florida State University
Kathleen M. Carley
Carnegie Mellon University
Virtual organizations that use email to communicate and coordinate
their work toward a common goal are becoming ubiquitous. However,
little is known about how these organizations work. Much prior research
suggests that virtual organizations, for the most part because
they use information technology to communicate, will be decentralized
and non-hierarchical. This paper examines the behavior of one such
organization. The analysis is based on a case study of the
communication structure and content of communications among members
of a virtual organization during a four-month period. We empirically
measure the structure of a virtual organization and find evidence
of hierarchy. The findings imply that the communication structure
of a virtual organization may exhibit different properties on
different dimensions of structure. We also examine the relationship
among task routineness, organizational structure, and
performance. Results indicate that the fit between structure
and task routineness affects the perception of performance,
but may not affect the actual performance of the organization.
Thus, this virtual organization is similar to traditional
organizations in some ways and dissimilar in other ways.
It was similar to traditional organizations in so far
as task-structure fit predicted perceived performance.
However, it was dissimilar to traditional organizations in so
far as fit did not predict objective performance. To the extent
that the virtual organizations may be similar to traditional
organizations, existing theories can be expanded to study the
structure and perceived performance of virtual organizations.
New theories may need to be developed to explain objective
performance in virtual organizations.
A Self-Efficacy Theory Explanation for the Management
of Remote Workers in Virtual Organizations
D. Sandy Staples
John S. Hulland
University of Western Ontario
Christopher A. Higgins
University of Western Ontario
The current study is a first step in investigating how
virtual organizations can manage remote employees
effectively. The research used self-efficacy theory
to build a model that predicts relationships between
antecedents to employees' remote work self-efficacy
assessments and their behavioral and attitudinal
consequences. The model was tested using responses
from 376 remotely-managed employees in 18
diverse organizations. Overall, the results indicated
that remote employees' self-efficacy assessments play
a critical role in influencing their remote work
effectiveness, perceived productivity, job satisfaction and
ability to cope. Furthermore, strong relationships were
observed between employees' remote work
self-efficacy judgments and several antecedents,
including remote work experience and training, best
practices modeling by management, computer anxiety,
and IT capabilities. Because many of these
antecedents can be controlled managerially, these
findings suggest important ways in which a remote
employee's work performance can be enhanced, through
the intermediary effect of improved remote work
self-efficacy. The current study also provides a
basis for future research in the remote work area
through its development and testing of a remote
management framework.
Communication and Trust in Global Virtual Teams
Sirkka L. Jarvenpaa
The University of Texas at Austin
Dorothy E. Leidner
This paper explores the challenges of creating and
maintaining trust in a global virtual team whose members
transcend time, space, and culture. The challenges are
highlighted by integrating recent literature on work
teams, computer-mediated communication groups,
cross-cultural communication, and interpersonal and
organizational trust. To explore these challenges
empirically, we report on a series of descriptive case
studies on global virtual teams whose members were
separated by location and culture, were challenged
by a common collaborative project, and for whom the
only economically and practically viable communication
medium was asynchronous and synchronous computer mediated
communication. The results suggest that global virtual
teams may experience a form of 'swift' trust but such
trust appears to be very fragile and temporal. The
study raises a number of issues to be explored and
debated by future research. Pragmatically, the study
describes communication behaviors that might
facilitate trust in global virtual teams.
Communication Patterns as Determinants of
Organizational Identification in a Virtual Organization
Batia M. Wiesenfeld
New York University
Sumita Raghuram
Fordham University
Raghu Garud
New York University
Recent advances in information technologies provide
employees the freedom to work from any place and at any
time. Such temporal and spatial dispersion, however,
threatens the very meaning of firms. This paper suggests
that organizational identification may be the critical
glue linking virtual workers and their organizations.
It explores the role that information technologies play
in the creation and maintenance of a common identity
among decoupled organization members.
Risk Mitigation in Virtual Organizations
Martha Grabowski
Le Moyne College
and
Rensselaer Polytechnic Institute
Karlene H. Roberts
University of California, Berkeley
Raghu Garud
New York University
This paper examines the problem of risk mitigation
in virtual organizations (VO's). It begins by discussing
risk propensity in virtual organizations, and draws on a
variety of research to suggest processes important in
obtaining high levels of reliable performance in VO's.
From this research we identify four processes we think are
important: organizational structuring and design,
communication, culture, and trust. Based on existing
research done in conventional and high reliability
organizations, we suggest how these processes may
enhance reliability in VO's. We discuss how thoughtful
management of these attributes can mitigate risk, and
conclude with a theoretical and research agenda for
future work.
Communication Processes in Virtual Organizations
Gerardine DeSanctis
Duke University
Peter Monge
University of Southern California
Communication is fundamental to any form of organizing but is preeminent in virtual organizations. Virtual organizations are characterized by (a) highly dynamic processes, (b) contractual relationships among entities, (c) edgeless, permeable boundaries, and (d) reconfigurable structures. Relative to more traditional settings, communication processes that occur in virtual contexts are expected to be rapid, customized, temporary, greater in volume, more formal, and more relationship-based. To glean insight into communication processes for virtual organizations, we draw on the rich body of literature on synchronous and asynchronous electronic organizational communication. The vast set of empirical findings regarding mediated communication can foreshadow how communication will change as firms "go virtual." Six areas of electronic communication research provide implications for the major aspects of virtual organization design: (1) communication volume and efficiency, (2) message understanding, (3) virtual tasks, (4) lateral communication, (5) norms of technology use, and (6) evolutionary effects.
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