ABSTRACT
Introduction Of late, the notion of the virtual organization has attracted a great deal of attention. Indeed, in a comparatively short period of time, there has arisen an extensive literature on the subject and on the strategy of virtual organizing. However, for a number of reasons, this body of literature does not necessarily elucidate this topic. First, there is confusion in the literature on what is meant by ‘virtual’ and the ‘virtual organization’. Arguably, while this semantic confusion exists, clarity in this field will not (indeed, cannot) be achieved. Second, there is a tendency to confuse ‘virtual’ with ‘virtuous’, ‘virtuality’ with ‘virtuousness’ (and hence goodness), and from this to draw comparisons with integrated structures or bureaucracies, which almost inevitably attract the ‘bad’ label from the other end of the continuum (Chesbrough and Teece, 1996). Third, there seems to be an issue of empirical evidence for many of the assertions made. While the discussion of virtual organizations remains at a largely conceptual and theoretical level, there would seem some justification to question the relevance and veracity of the debate to business practice. In light of these three issues, this chapter will represent a bold attempt to redress our concerns.
