Abstract

The rapid development of information and communication technology (ICT) has resulted in several improvements in diverse aspects of the organizational structures, including the introduction of virtual teams (VTs). Organizations rely on VTs since they bring a lot of benefits, such as the enhancement of organizational performance. However, effective VTs cannot exist without the proper implementation of decision-making processes. There is a lack of scientific research that attempts to understand the factors affecting decision-making processes in VTs. Studies in this area have only been conducted in the United States and Europe. However, such research has not been conducted in the Middle East, where specific scientific solutions are still required to improve the performance of VTs. Therefore, this study is conducted in the Middle East to gain scientific knowledge on this region’s specificity. Thus, the objective of this study is to identify the factors that affect VT decision-making processes. An online survey was used to collect data (Google forms) from companies in the IT industry in UAE, which are engaged in VTs. A literature review, survey methods, and structural equation modeling were used. The results showed that culture intelligence (CQ), transformational leadership (TL), and task conflict have a positive effect on VT decision-making processes, and relationship conflict has a negative impact on VT decision-making processes, which provides the management teams with a guideline on what to concentrate on in the measuring and enhancement of the effectiveness of VT decision making.

Highlights

  • The most important changes that face organizations are caused by information and communication technology (ICT) (Al Majzoub and Davidavičienė 2018)

  • The results showed that culture intelligence (CQ), transformational leadership (TL), and task conflict have a positive effect on virtual teams (VTs) decision-making processes, and relationship conflict has a negative impact on VT decision-making processes, which provides the management teams with a guideline on what to concentrate on in the measuring and enhancement of the effectiveness of VT decision making

  • Based on the empirical research conducted, it can be concluded that culture quotient (CQ), TL, and task and relationship conflict are important factors to consider when measuring VT

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Summary

Introduction

The most important changes that face organizations are caused by information and communication technology (ICT) (Al Majzoub and Davidavičienė 2018). The use of virtual teams is important for organizations because they allow team members to communicate, despite distance and time constraints. They allow organizations to hire the most talented people regardless of the location, which increases the efficiency of the team (Schmidtke and Cummings 2017). It could be concluded that there is a lack of research that examines the effect of these three factors—conflict, culture and leadership—on the decision-making process in UAE

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