We Have Always Been Virtual

Abstract

The expression ‘virtual corporation’ was mostly popularised by Davidow and Malone (1992) and Byrneet alinBusiness Week(1993, Feb 8`l). A virtual corporation is characterised as an edge-less and porous structure, with continuously shifting interfaces among a company, suppliers, customers, regulators, etc. Its design is constantly reforming according to customer needs. Virtual products and services are defined in terms of information and knowledge. To some theorists, information technology (IT) is a determining factor (Byrne et al 1993). Others (i.e. Davidow and Malone 1992; Hedberg et al 1994) simply emphasise its role as a facilitator. According to the former view, the virtualisation of organisation opens up new modes of interactions and relationships—all of which are attendant upon the advent of information technologies (customer databases, simulations, e-mails, videoconferencing, Internet, Intranet, Extranet, virtual reality, etc) (Byrne et al 1993; Franke 2000). Central to most such considerations is the idea of time-space compression, or the erosion of time-space constraints. Removing time-space co-ordinates enables firms to save time and costs. Because unrelated suppliers are involved in the sharing of resources, information and knowledge in a virtual setting, there has been a renewed interest in the role oftrustas an alternative control or co-ordination mechanism, as a substitute for contract, price or authority (Arrow 1974; Handy 1990; Bradach and Eccles 1989; Hedberg et al 1998; Franke 2000). The underlying assumption is that management is unable to exert direct control within virtual contexts. “Virtuality… [means] without a place as its home. Virtuality requires trust to make it work.” (Handy 1995: 44).