Network structure in virtual organizations

Virtual organizations that use e-mail to communicate and coordinate their w ork toward a common goal are becoming ubiquitous. However, little is known about how these organizations work. Much prior research suggests that virtu al organizations, for the most part because they use information technology to communicate, will be decentralized and nonhierarchical. This paper exam ines the behavior of one such organization. The analysis is based on a case study of the communication structure and content of communications among m embers of a virtual organization during a four-month period. We empirically measure the structure of a virtual organization and find evidence of hiera rchy. The findings imply that the communication structure of a virtual orga nization may exhibit different properties on different dimensions of struct ure. We also examine the relationship among task routineness, organizationa l structure, and performance. Results indicate that the fit between structu re and task routineness affects the perception of performance, but may not affect the actual performance of the organization. Thus, this virtual organ ization is similar to traditional organizations in some ways and dissimilar in other ways. It was similar to traditional organizations in so far as ta sk-structure fit predicted perceived performance. However, it was dissimila r to traditional organizations in so far as fit did not predict objective p erformance. To the extent that the virtual organizations may be similar to traditional organizations, existing theories can be expanded to study the s tructure and perceived performance of virtual organizations. New theories m ay need to be developed to explain objective performance in virtual organiz ations.