Virtual organizations are business and organizational models made possible by globalization and developments in transportation, information, and communication technologies in the late 20th and early 21st century. Indeed, due to the rapid advances in information and communication technologies, virtual organizations are expected to play an increasingly important role in the global economy. If this is the case, what are virtual organizations? The following insights came from two volumes on the subject including The Handbook of High Performance Virtual Teams and Virtual Organizations edited by organization behavior scholars Jill Nemiro, Michael Beyerlein, Lori Bradley, and Susan Beyerlein; and Abbe Mowshowitz, respectively.
Definition of Virtual Organization
Simply put, a virtual organization can be defined as a goal-oriented enterprise composed of multiple members who reside in different locations around the world and use technology media to communicate and coordinate the fulfillment of a defined objective or task.
Virtual Organizations Composed of Multiple Team Members
First, a virtual organization is an enterprise composed of multiple members. A member of a virtual organization could be defined as any individual, group of individuals, or formally organized enterprise recruited to serve as a satisfier of an input needed to produce a desired outcome. For instance, for a computer manufacturer in California, a virtual member could be an individual software programmer in India or Ireland; a supplier of a part in Singapore; and or a PR or sales representative located in Germany.
Members Dispersed in Different Geographic Regions of the World
Second, members of virtual organizations reside in geographically dispersed locations i.e. they do not live within reasonable driving distance of each other and are restricted by location from sharing the same physical workspace. Often, members of virtual organizations live in different countries and across multiple time zones.
Virtual Organizations Coordinate Efforts through Media Technology
Third, members of virtual organizations communicate and coordinate activities through technology media. Because team members are dispersed around the globe, they rarely meet face-to-face. The types of media technology used to coordinate activities include email and or Internet applications like Skype, Instant Messenger, and GoToMeeting. Accordingly, participants in virtual teams must be proficient in the use of media technology applications.
Virtual Organizations Collaborate for Achievement
Finally, members of virtual organizations are brought together to fulfill a purpose. They are goal-oriented enterprises recruited to collaborate together for the fulfillment of a stated vision, objective, or tasks relevant to a particular project. Effective collaboration in virtual teams includes cross-cultural sensibilities and skills; emotional intelligence in communicating through electronically sent messages; and well-defined processes and roles whereby every member works from the same page.
Sources:
- Mowshowitz, A. (2002). Virtual Organization. Westport, CT: Quorum Books.
- Nemiro, J., Beyerlein, M., Bradley, L., & Beyerlein, S. (2008). The Handbook of High-Performance Virtual Teams. San Francisco, CA: Jossey-Bass.
Eric Coggins - Eric Coggins is a doctoral student at Regent University's School of Global Leadership & Entrepreneurship. From 2000 to 2006, he worked as ...
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