How Do Virtual Teams Work Efficiently

Abstract

Virtual teams are groups of members collaborating in the execution of a specific task from disperse locations. Increasing use of virtual teams has highlighted the need for organizations to focus on ways to improve their performance. The key issues of concern include both technical and social dimensions, and this research study addresses the latter. Hence, this study derives a social relationship model from a comprehensive literature review and conducts an experiment to validate this through SEM (structural equation modeling). The results reveal: (1) communication has a direct positive impact on relationship building, but indirect positive effects on performance and satisfaction; (2) relationship building impacts directly with strong and positive impacts on cohesion and trust, but indirectly with strong impacts on performance and satisfaction; (3) cohesion has a direct, strong, and positive impact on performance, but a strong indirect impact on satisfaction; (4) trust has a positive direct impact on performance, but an indirect positive impact on satisfaction; and (5) performance has a strong and positive impact on satisfaction. In addition, this study confirms that relationship building is a vital mediator in the social relationship model. Managerial implications and future research directions are identified.