VIRTUAL ORGANIZATIONS: WHAT YOU SEE MAY NOT BE WHAT YOU GET

Abstract

Virtual organizations are new organizational forms comprising a set of network transactions that differ from those found in markets and hierarchies. This paper explores the nature of these network transactions through an in-depth study of a virtual firm. The virtual organization is characterized by constant organizing through virtual teams and alliances, a unique management culture and a set of norms, information and knowledge sharing enabled by information technology, and employee self-governance. The organization gains from a culture of fast-response and efficiency while employees are trusted to exercise discretion and take initiatives.