Virtual Distance - PHD Disertation

Virtual Distance: A Proposed Model for the Study of Virtual Work
By
Karen Sobel Lojeski
A DISSERTATION
Submitted to the Faculty o f the Stevens Institute of Technology in partial fulfillment of
the requirements for the degree of
DOCTOR OF PHILOSOPHY
S /t'
ijeski, Candidate
ADVISORY COMMITTEE:
Dr. Richard iteilly, Chairman
/D ate
Dr. warren Axelrod
b r. Peter Dominick
Dr. Alan
<r/" U
Dr. Robert Stinerock
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ABSTRACT
Virtual Distance: A Proposed Model for the Study of Virtual Work

The extensive use o f virtual teams (VTs) and outsourced resources has become a
ubiquitous norm in many corporations around the globe. However, little is known about
how this increasing trend, being implemented on such a large scale, impacts critical
performance drivers (Powell, Piccoli et al. 2004).
Despite a growing body o f literature on the subject o f virtual work, there is still no
unifying framework that helps to predict organizational outcomes. The goal o f this
dissertation is to develop such a framework. The model, coined the Virtual Distance
Model (VDM), will help both researchers and practitioners better understand the complex
set of issues that can cause degradation to performance and productivity on VTs.
Virtual Distance is defined as the perceived distance between two or more individuals,
groups or organizations, brought on by the persistent and pervasive use o f technologymediated work and communications. Virtual Distance is a multidimensional perceptual
construct designed using the key elements which promote a sense of distance in virtual
work environments. Research has shown that the perceived distance between two or
more individuals has negative effects on communication and persuasion and promotes a
tendency to deceive (Bradner and Mark 2002). Virtual work is comprised o f team
members that are, by definition, distant from one another, both physically and
psychologically. Socio-emotional factors can play a role in perceived distance and these
factors may contribute to decreased success (Barczak and McDonough 2003).
VDM was developed after conducting an extensive literature review and combining
findings from that effort with executive interview information collected over the course
o f the first 18 months o f this research. The model was tested using a multi-step research
method including surveys and follow-up interviews with key executives from a sample of
corporations leveraging virtual workspaces.
The findings show that Virtual Distance is in fact a new, unique and measurable construct
that has significant and negative relationships to Clarity, Trust and Organizational
Citizenship Behavior. The model also supports the hypothesis that through these
mediating variables Virtual Distance has a negative and significant relationship to Project
Success.
Author: Karen Sobel Lojeski

Advisor: Richard Reilly
Date: May 3, 2006
Department: Technology Management
Degree: Doctor of Philosophy
Dedication:
This work is dedicated to my husband Paul and my daughter Cezanne who both selflessly
provided me with constant support and made it possible for me to do what, at times,
seemed like the impossible. I love you both dearly you are the light of my life.
Acknowledgements:
I would like to thank my committee for all o f their support and critical input into this
dissertation. Each member added great value to this work. Peter Dominick was always
there to remind me that the process o f good theory building is based on the combination
o f experiences and academic research and was an on-going source o f encouragement for
me. Bob Stinerock consistently provided me with motivation and empathy. Importantly
he underscored that to go through this process took some chutzpa and Bob always
helped me to see the lighter side of things. Alan Maltz kept me on track and provided
much-needed pragmatism and steady direction. Alan gently and routinely reminded me
to stay focused. Warren Axelrod helped me to put Virtual Distance into the context of
the most practical o f real-world problems. Warren was a true believer from the
beginning and with each conversation he found new applications around how the work
could be used. And while everyone on the committee was invaluable to this work, most
importantly, I would like to thank Dr. Richard Reilly. Dick inspired me to use my mind
in ways that I could never have dreamed of before meeting him. As a brilliant researcher
and profoundly deep thinker, Dick taught me ways to look at and analyze problems that
have forever changed the way I will think about every-day life and philosophical
conundrums. There are no words that can truly describe my gratitude to him. Dick was
my mentor, my oracle o f all-that-is-the-best-about-research and he was a tireless and
highly enthusiastic contributor to the development of Virtual Distance. But most of all
Dick Reilly became a very dear friend to me - a relationship that I shall treasure for the
rest of my days. I also want to thank all o f my friends and especially Dr. Mary Jo Wilson
for her never-ending supply o f support and encouragement.
TABLE OF CONTENTS
LIST OF FIGURES...........................................................................................................8
LIST OF TABLES..............................................................................................................9
I.
INTRODUCTION.................................................................................................10
LI THE RESEARCH PROBLEM........................................................................... 10
I.n
THE RESEARCH QUESTION....................................................................14
Lffl
SIGNIFICANCE.............................................................................................15
I.IV
IMPLICATIONS AND CONTRIBUTIONS..............................................16

.
II. REVIEW OF RELEVANT RESEARCH................... ............................................... 17

II.I REVIEW OF THE LITERATURE......................................................................17
II.E
REVIEW OF VIRTUAL TEAM (VT) STUDIES AND DISTANCE FACTORS 28
n.m
EXECUTIVE INTERVIEWS........................................................................ 44
n.rv
LIMITATIONS OF THE RESEARCH.......................................................47
HI.
THE PROPOSED MODEL...............................................................................49
m.I CONSRUCTS AND OPERATIONAL DEFINITIONS................................ 49

in.I HYPOTHESES.....................................................................................................52
m .n. VIRTUAL DISTANCE, TRUST, CLARITY, OCB AND PS...................... 53
IV.
IV.I
METHODOLOGY............................................................................................ 58
LARGE SURVEY SAMPLE AND DATA COLLECTION...................... 59
IV.II DATA ANALYSIS............................................................................................. 61

V. RESULTS................................................................................................................... 62
V.I DATA CLEANSING AND CASE ELIMINATION SUMMARY..................62
V.II PRELIMINARY ANALYSIS OF VIRTUAL DISTANCE VARIABLES.... 65

VIE. FINAL ANALYIS OF CONSTRUCTS.......................................................... 67
V.IV SUMMARY OF HYPOTHESIS TESTS......................................................... 71
V.V IN THEIR OW N WORDS................................................................................72
VI. DISCUSSION............................................................................................................74
VLI BACKDROP.......................................................................................................74
VI.II VIRTUAL DISTANCE FACTORS CONSIDERED..................................... 76
VI.III RELATIONSHIP BETWEEN VIRTUAL DISTANCE AND TRUST,
OCB, CLARITY AND PROJECT SUCCESS.......................................................... 88
VI.IV. CONTRIBUTION TO RESEARCH............................................................ 93
VI.V. CONTRIBUTION TO TH EO RY .........................................
97
VII. PRACTICAL IMPLICATIONS AND FUTURE RESEARCH........................ 100

V ni. LIMITATIONS..................................................................................................... 103
IX. CONCLUSIONS.......................................................................
Appendix 1 - Literature Review Detail..............................................
10
106
Appendix 2 - Research Overview Sent to Prospective Participants............................ 121

Appendix 3 - Discussion Guide for Executive Interview s...........................................127
Appendix 4 - Glossary of Terms................................................................................... 128
Appendix 5 - Sample Excerpts from Executive Interviews
....................................130
REFERENCES.............................................................................................................. 131
Vita.................................................................................................................................. 143
Figure 1 - Model of Virtual Distance and Mediating and Dependent Variables..

Figure 2 - SEM Model..................................................................................... 67
Figure 3 - Identity Orientation Processes in Demographically Diverse Organizations*
Figure 4 - Thompsons Classification of Interdependence....................................
Figure 5 - Literature Review Overview................................................................
Table 1 - Summary of Virtual Team Studies (Powell, Picolli & Ives, 2005)..................30
Table 2 * Comparative Table of Research and Distance Factors................................... 38
Table 3 - Construct Summary......................................................................................... 50
Table 4 - Summary of Trust, Clarity and OCB Constructs...........................................52
Table 5 - Summary of Case Elimination..........................................................................63
Table 6 - Preliminary Analysis of Virtual Distance Variables....................................... 66
Table 7 - Means, SD, Reliabilities, Intercorrelations for Model Variables.....................68
Table 8 - Summary of H ypotheses..................................................................................71
Table 9 - Selected Quotes from Comments Section of Survey...................................... 72
Table 10 - Characteristics of Bureaucratic and Post-Bureaucratic Organizations
79
Table 11 - Literature Review Analy..............................................................................I l l

Table 12 - Searchable Fields in Endnotes..................
113
Table 13 - Table of Literature Databases Created........................................................ 115

Table 14 - Terminology Analysis.................................................................................. 117
Table 15- Duplication Analysis..................................................................................... 120
Table 16 - Glossary of Term s.........................................................................................128
LI
THE RESEARCH PROBLEM
Several developments have led to major changes in the way the 21* century economy
operates (Roach, 2005). They include, but are not exclusive o f the following:
Rapid acceleration o f globalization (Friedman 2005);
new organizational forms including the networked organization (Miles and Snow
1992);
and individuals working together regularly who are separated by time, space and
organizational affiliation.
The above are being strung together by IT-enabled connectivity. At the organizational
level, one o f the most notable changes has been the rapid rise in the use o f global, VTs
(Stough, et al. 2000). However, while the VT body o f research continues to grow, still
relatively little is known about the combined effects o f virtual work on performance
outcomes (Powell, Piccoli et al. 2004).
Therefore, while many o f the VT studies provide useful insights and recommendations
for future research, a lack o f significant findings on the dependent variable, Success, may
suggest that we still do not fully comprehend the nature of the seismic shifts occurring in
virtual, increasingly global, networked organizations.
Several issues may be contributing to the need for a more integrative and multi
dimensional approach to the research and ensuing theory development. Three o f these
11
issues include two distinct streams o f literature that do not readily inform one another, a
dichotomous versus continuous distinction between virtual and traditional teams, and a
myopic discussion o f distance that is constrained to only physical factors.
Two Distinct Literature Streams

VT research has traditionally been conducted, for the most part, from two distinct points
o f view; the management or organizational point of view which focuses mainly on the
social impacts o f geographic dispersion and asynchronous communication (Jarvenpaa
and Leidner 1998; Townsend, DeMarie et al. 1998), versus the technological point of
view, which sometimes looks into behavioral issues (Miranda and Bostrom 1994), but
more often, uses the technological system as the basis for research design and hypothesis
construction (Larsen and Mclnemey 2002). However, both technology and social issues
are important to understanding the overall impact of virtual work on performance and
success. For example, interpersonal relationships affect the use of technology in a
positive direction (Kraut, Steinfield et al. 1999). The level of cognitive absorption that an
individual displays may be an antecedent of perceived technology usefulness and
perceived ease o f use which leads to more social interactions (Agarwal and Karahanna
2000). Therefore, if one were to try and construct a unifying model for the study o f
virtual work, it is important to recognize that virtual workspaces are an integrative blend
o f management, organizational and technological issues (Turoff 1997).
12
Virtual verms Traditional Teams

Much o f the literature defines VTs as collections of individuals separated by geography
and time zones, who use high-speed telecommunications and computers to communicate
(Jarvenpaa and Leidner 1998; Townsend, DeMarie et al. 1998; Majchrzak, Rice et al.
2000; Malhotra, Majchrzak et al. 2001). Using this operational definition, researchers
have conducted studies designed to compare traditional teams against virtual teams;
in many instances treating the state of being virtual as a dichotomous variable (Powell,
Piccoli et al. 2004). However, in organizations that rely on information and
communication technology (ICTX most professionals use a variety o f different media to
conduct business (Pauleen 2003). At times they may be geographically separated and use
email, instant messaging or other electronic communication tools while at other times
they may meet face to face (FtF) and communicate verbally and non-verbally. In some
cases they may be interacting using both FtF and electronic communications at the same
time (Richtel 2003). In the 21st century and beyond, virtually all global knowledge
workers are likely to be virtual at least part of the time; making it almost impossible for
researchers to stabilize experimental study conditions enough to reflect real-world
interaction dynamics using the current set of constructs as defined. While it is true that
some individuals on teams will never meet, over the course of a project, or long-term
partnership, for example a strategic outsourcing relationship, the state o f virtualness
among individuals will likely vary (Pauleen 2003). Therefore, it is proposed that the state
o f being virtual be seen as lying more on a continuum or spectrum versus being one or
the other.
13
Distance Constructs Constrained to Physical Factors

While the notion of distance is, by definition, at the heart of VT studies, most of the
literature so far has focused on geographic and temporal factors. Co-located teams are
those defined as having members located in the same place, i.e. there is no physical
distance separating team members. VTs are those defined as having members that are
geographically separate, with vast distances between one another (Alavi 1994;
Townsend, DeMarie et al. 1998; Majchrzak, Malhotra et al. 2004). Therefore, the idea
that physical distance plays a role in VT behavior is well-established. However, research
also shows that other variables can contribute to a sense o f socio-emotional or
psychological distance. Interpersonal, social, organizational and technical factors also
play a role ami have important implications for the attitudes and behavior o f team
members and their ability to succeed (Bradner and Mark 2002). These factors can
include, but are not limited by, building trust and motivating one another, cultural
diversity and lack of goal clarity (Barczak and McDonough 2003). Collaboration,
whether it is FtF or computer mediated, occurs within a much broader context than
simply geographic and temporal dispersion. So there is reason to expand the research
beyond physical distance constructs. One o f the baric assumptions o f this thesis was that
the use of geographic and temporal distance constructs alone, are not enough to explain
performance differences among teams in the 21st century. Instead, it was posited that the
construct of distance for VTs be expanded to include socio-emotional distance factors as
well.
14
As Stephen wrote, it is time to let go of some o f our time-honored relationships

(Roach, 2005). While Roach was referring to macro-economic relationships, the
sentiment applies to micro-economic relationships as well - including virtual teams and
globally distanced workforces. A paradigm shift in thinking is required to do so and a
new, unifying and parsimonious framework is needed to open up the black box that sits
between virtual work and performance outcomes; one that reflects the integrative and
multi-dimensional nature of the complex interplay o f both real and perceived issues at the
individual and group level. The development of such a model was the purpose of this
thesis and the resulting model has been named, The Virtual Distance Model (VDM).
The model was developed through a review o f the major research streams primarily in
management and technology, combined with some central tenants o f the theories o f
distance, social science, and psychology. In addition, an initial set o f field research was
conducted, in the form o f executive interviews, to ground the theoretical discussion in
real-world terms as perceived by leaders at major, global organizations.
I ll
THE RESEARCH QUESTION
The research to date suggests that there may or may not be performance differences
between VTs versus traditional teams (Powell, Piccoli et al. 2004). However, as was
noted earlier, the use of VTs versus traditional teams as the primary grouping mechanism
has not captured significant differences with respect to success. Therefore, this may
imply that the studies to date do not capture important factors that contribute to VT
performance. Therefore, a unifying model for the study o f virtual work was developed
15
in this thesis in order to extend the research and consider a broader set of distance factors.
By combining what has already been learned about geographic and temporal distance,
and adding those learnings to other, socio-emotional factors that have been shown to
contribute to a sense o f distance among team members, the VDM provides evidence that
statistically significant differences on the success measure, is related to both.
So the primary focus of this research was to identify the major factors that contribute to a
perceived sense o f distance among team members, brought on by the pervasive use of
computer mediated communication and expanding virtual work environments, and to test
whether and how these factors, when taken together, impact project success.
The research question was therefore stated as follows:

How does virtual work impactproject success?
L in SIGNIFICANCE
While a number of theories have been used to support VT studies, including but not
exclusive of network and organization theory (Ahuja and Carley 1999), social presence
and media richness theory (Burke and Chidambaram 1999; Majchrzak, Rice et al. 2000;
Ramesh and Dennis 2002), contingency theory (Galegher and Kraut 1994), and
structuration theory (Krumpel 2000; Qureshi and Vogel 2001), there has yet to emerge a
parsimonious theory for the study of virtual work on which to build a predictive model of
VT performance. It was the intent of this thesis to provide both theoretical supports for
the Virtual Distance construct, and to test the construct through a rigorous research
16
design, in order to create a unifying theory o f virtual work. The evidence from this
investigation suggests that Virtual Distance Theory (VDT) should be considered as such.
I.IV IMPLICATIONS AND CONTRIBUTIONS

The literature from a multitude of sources including management, technology,
psychology, economics, networks, culture, distance theories and more, was reviewed as
part of this study. Combined with case study and survey data, an integrative, multi
dimensional view of the potential causes for problems and performance degradation in
VTs was devised. Some suggest that this triangular and cross-disciplinary approach is
imperative if we are to better understand how virtual work impacts organizations over the
long term (Gopal and Prasad 2000; Orlikowski 2001). This study extends the literature
on virtual work in this manner. Additionally, a robust model for the study of virtual
work, that may provide predictive power for future VT studies, was also developed. This
was done by creating the construct o f Virtual Distance. Virtual Distance was measured
using an indexing technique that quantitatively reflects many factors that to date have
been considered intangible or have gone unmeasured.
This chapter describes the review o f the relevant research. An extensive literature review
on virtual work was conducted along with a review of relevant distance research. In
addition, executive interviews were used as another source of relevant research in the
model development. A detailed description o f the review processes and analysis can be
found in Appendix 1.
In addition, this chapter includes a comparative table o f some VT studies as described in

Powell, Picolli and Ives literature review (2005). This was done to highlight some
examples o f the extent to which the factors that contribute to distance, as described in the
body of this dissertation, have been studied, within the context o f previous works on the
subject o f VTs.
I l l REVIEW OF THE LITERATURE

Virtual work environments are defined in a variety o f ways. Virtual work can be
described as unique technological systems, in which software and system designers have
a major impact on not only the system design, but also the social systems in which they
are used (Turoff 1997). Virtual work environments are also operationalized as
geographically and temporally displaced groups o f workers who use technology to
support work and communications (Jarvenpaa and Leidner 1998; Townsend, DeMarie et
al. 1998; Massey, Montoya-Weiss et al. 2001; Massey, Montoya-Weiss et al. 2003).
Others characterize virtual work groups as global VTs which are internationally
distributed and which work toward an organizational mandate (Manzevski and Chudoba
18
2000). Virtual work environments are also cited as new forms o f online communities
(Hiltz and Wellman 1997; Dennis, Pootheri et al. 1998) and network communities
(Hattori, Ohguro et al. 1999). Another definition holds that virtual organizations are
networks of independent companies that connect to share skills and cost (Dess, Rasheed
et al. 1995). Others view a virtual organization as one that uses email to communicate
and coordinate work (Ahuja and Carley 1999). Some distinguish virtual work
environments as companies that outsource organizational competencies (Dess et al.,
1995).
An example o f two very different points of view on virtualhy is described in the quotes
below.
In his 1997 paper Virtuality, Turoff wrote:

.. .the property of virtuality has to be o f explicit concern to the designers of
these systems. Virtuality carries the potential for the conscious design and
implementation of social systems that include organizational and economic
systems at any level o f social aggregation... .My definition o f virtuality can be
summed up as the potential for a virtual system to become part o f the real world.
The speed at which these societal transformations are now possible has left behind
the current approaches to dealing with social change (Turof 1997, p.42).
Turoff considers virtuality in the context o f social change and system design. However
highly cited management researchers, Townsend, DeMarie and Hendrickson (1998),
reference virtuality in terms o f teams very differently:
.. .virtual teams are groups of geographically and/or organizationally dispersed
coworkers that are assembled using a combination o f telecommunications
and information technologies to accomplish an organizational task. Virtual
teams rarely, if ever, meet in a face-to-face setting. (Townsend, DeMarie et al.
1998).
As the examples above show, researchers define virtual work environments differently.
While it may be helpful to conceive of virtual work in these various ways, the use of a
myriad o f definitions may also be leading to missed research opportunities. For example,
the literature review indicated that only a small percentage of the journal articles
referenced more than one virtual work term (see Appendix 1). So if an investigator is not
particularly well-versed in a combination of technological, managerial, psychological,
and other multi-disciplinary terms, some of the relevant research may be inadvertently
overlooked (Gopal and Prasad 2000).
Varying terminology may also lead one to surmise that there is something significantly
different about these concepts. Originally, different names and categorizations for virtual
work were used. These included Computer Supported Collaborative Work (CSCW),
Computer Mediated Communication (CMC), virtual work, Human Computer Interaction
(HCI), Distributed or Decision Support Systems (DSS), and others. As initially
conceived, these terms may have had unique meaning. Today, however, the distinctions
between CMC, CSCW, virtuality and HCI are less clear. In fact, it is arguable that all
virtual work involves human computer interaction, is propagated through the use of
computer mediated communications and usually can be found where people are
conducting computer supported collaborative work. The study of Group Support
Systems (GSS), Group Decision Support Systems (GDSS) and Distributed or Decision
Support Systems (DSS) all represent virtual work where groups operate through
technology mediation. Research in these many areas have uncovered findings regarding
20
spatially and temporally displaced workers (Chidambaram 1996; Dennis and Kinney
1998; El-Shinnawy and Vinze 1998; Alavi, Marakas et al. 2002; Huang, Wei et al. 2003).
However no particular conclusions can be drawn when some o f this work is taken in sum
(Pinsonneault and Heppel 1998).
Therefore, while the virtual work literature covers a wide variety o f technologies and
organizational settings, the extensive variations in terminology and interpretation of
virtual work may be masking important findings that would otherwise be seen if a
unifying framework were used to discern virtual work research and bring together the
concepts that are reflected in these diverse lexicons.
Distance-Related Research
When one goes back and examines how distance has historically played a role in major
theory development, one quickly finds that distance has been an important factor in both
management and scientific endeavors. Part o f modern-day economics is based on
location theory, which explains where economic activity takes place and why; a theory
grounded in the notion o f distance (Fujita and Krugman 2004). Cultural Distance (CD) is
also dted in economic literature. Understanding CD purports to help with decision
making in Foreign Direct Investment (FDI) by multinational corporations (Lin 1996).
Social Distance (SD), a theory often found in social science studies, describes differences
in economic class and status (Coyte 1991). Other concepts, like power distance (Kersten,
Koeszegi et al. 2003), can also be considered variant forms of SD. Social Network
Theory (SNT) describes how network theory can be used to explain social behaviors
21
(Safferstone 1998; Ahuja 2000). Interaction among VT members may be influenced by

factors such as node centrality, a distance-based phenomenon (Ahuja, Galletta et al.
2003). The small-world phenomenon (the extent to which nodes become effectively less
distant as the number of nodes increases) and other network-related characteristics have
helped researchers understand the dynamics between information and people (Adamic
and Huberman 2001; Barabasi 2003). The theory o f strong ties versus weak ties also
relies on distance-centered assumptions (Ho, Ang et al. 2003). Although strong ties may
be closer in proximal location, weak ties may be more meaningful to the network node or
individual (Wellman 2001).
Distance therefore can be seen as a fundamental concern in many disciplines. For VT

research, how can these and other distance theories be useful to the study o f virtual work?
One clue was uncovered in Bradner and Marks 2002 article, Why Distance Matters:
Effects on Cooperation, Persuasion, and Deception. In this study the authors conducted
an experiment in which one group was told that the confederate, speaking to all the
participants only through virtual communications, was in the same city. The other group
was told that the confederate was across the country. Measurements on cooperation,
persuasion and deception were taken during the course o f these virtual interactions. The
study found that perceived distance was a significant contributor to behavior. Those who
thought that they were further away were significantly less likely to cooperate or be
persuaded by the confederate and were significantly more likely to deceive others. (For
more detail see Bradner and Mark, 2002).
22
Most global VT research considers Geographic Distance (GD) as a fundamental

characteristic. But distance can also be used to describe the emotional or psychological
gap between team members who work in the same building and regularly meet face to
face (FtF). For a team that is working primarily in virtual space, socio-emotional
distance may be a function o f several other factors in addition to the obvious ones of
geography and computer mediation.
Factors Influencing Distance

Based on a review of management, information systems and psychological literature, a
number o f socio-emotional distance factors that influence team members were identified.
These include spatial, temporal, technical, organizational and social factors that shape the
perceptions o f individuals engaged in collaborative work. In the present investigation
these factors were reviewed as to how they collectively impacted work related attitudes,
behavior and performance. Eleven factors likely to influence the perceptions o f distance
between team members, are discussed in the following sections.
i. Geographic Distance (GD)

Research suggests that physical separation or closeness is of great importance to
interactions and that the closer one is physically to another, the greater the chance to form
social ties (Latane and Herrou 1996). Physical distance also impacts the tendency to
deceive, ability to influence and the likelihood of cooperation (Bradner and Mark 2002),
and has been shown to have some impact on learning behavior (Latane and Bourgeois
1996; Bulte and Moenaert 1998; Arbaugh 2001; Bradner and Mark 2002; Coppola, Hiltz
et al. 2002).
2. Temporal Distance (TD)

Differences in time zones between VT members are often cited as one of the factors that
plays a role in VT interactions (Jarvenpaa and Leidner 1998; Montoya-Weiss, Massey et
al. 2002; Massey, Montoya-Weiss et al. 2003). It has also been suggested that TD be
considered when structuring organizations (Orlikowski and Yates 2002), globalizing an
organization (Boudreau, Loch et al. 1998), assessing team boundary issues (Espinosa,
Cummings et al. 2003) and coordinating VTs (Montoya-Weiss et al., 2002)
3. Relational Distance (RD)

RD refers to the difference between team members organizational affiliations. For
example, an employee of a company is relationally closer to another employee o f the
same company versus an employee from a third party service provider. RD has been
shown to play a key role in social cohesion (Moody and White 2003), information
systems networks, as well as leader effectiveness (Klagge 1997).
4. Cultural Distance (CD)

Cultural differences have, to date, been a focus o f some research in virtual work and
innovation, VTs (Jarvenpaa and Leidner 1999; Dube and Pare 2001; Massey, MontoyaWeiss et al. 2001), new product teams (Barczak and McDonough HI, 2003), risk
mitigation (Grabowski and Roberts 1999), virtual societies (Igbaria 1999), consensus
24
building using group support systems (Mejias, Shepherd et al. 1997), majority influence
(Tan, Wei et al. 1998), software development (Tellioglu and Wagner 1999) and more.
CD has also been used to study foreign investment expansion, entry mode choice, and the
performance of foreign invested affiliates, among others (Shenkar 2001).
Following the
discussion o f social network theory and distance related phenomenon, CD has also been
used to interpret network ties amongst managers (Stevenson 2001). Additionally CD is
used to explain how international relationships affect responses and behaviors amongst
employees (Thomas and Ravlin 1995).
5. Social Distance (SD)

SD has been studied in a number o f contexts including class or status differences
(Akerlof 1997), feelings o f social closeness and distance based on social interactions in
social space (Bottero and Prandy 2003), as a factor in direct and networked exchanges
(Buchan, Croson et al. 2002), as a function o f management (Fox 1977), a dimension o f
the Systematic Multiple Level Observation o f Groups (SYMLOG) management behavior
assessment (Jensen 1993), as a perceived measure contributing to the concept o f leader
distance (Antonakis and Atwater 2002), and as a factor in friendship networks
(Krackhardt and Kilduff 1999). Wiesenfeld found that virtual work environments may
weaken ties that bind organizations and their members together (Wiesenfeld, Raghuram
et al. 1999) increasing SD. In another case, centrality, or less distance from the center of
the social network, was found to mediate the relationship between social status and
virtual R&D groups (Ahuja, Galletta et al. 2003). In a virtual organization with no
25
formalized hierarchy at the outset, the emergence o f a hierarchy and SD was found
(Ahuja and Carley 1999).
6. Relationship History (RH)

One aspect o f SD is RH. This includes both the extent to which members have had a
prior relationship or relationships with some o f the same people. RH has been shown to
be important in mentoring (Siegel, 2000) and trust building (Rousseau, Sitkin et al.
1998). In his study, "When does the medium matter? Knowledge-building experiences
and opportunities in decision-making teams", Alge showed that FtF teams exhibited
higher levels o f openness, trust and information sharing than computer mediated teams
that did not have a RH. However when computer mediated teams had prior relationships,
many o f these issues were eliminated. (Alge, Wiethoff et al. 2003).
7. Interdependence
Interdependence is the degree to which one individual or group perceives that their
success is tied to another individual or group member (Thompson, 1967). Thompson
claimed distance was a major factor in his classification scheme on Interdependence
(Thompson 1967). Interdependent tasks require more communication (Bishop and Scott
2000), which should lead to decreased distance between team members.
Task
interdependence has also been related to both organizational commitment and team
commitment and OCB (Pearce and Gregersen 1991; Bishop and Scott 2000). In the
virtual realm, goals may become less clear amongst players if they are not directly
attached to some sort of organizational mandate (Manzevski and Chudoba 2000).
26
Interdependent goals have also been found to have importance to international teams
(Davison 1994) and embedded, interdependent goal-setting in GSS has been shown to
help team cohesion (Huang, Wei et al. 2003).
8. Face to Face (FtF) Interaction

The notion of social presence has been used in research on virtual work to describe the
extent to which team members feel the presence o f other group members and die feeling
that the group is jointly involved in communicating (Andres and Zmud 2002; Venkatesh
and Johnson 2002). One end of the continuum o f social presence is FtF so frequency o f
FtF interaction should be related to perceptions o f distance. In some cases only email is
used and no FtF or phone communications are considered (Jarvenpaa and Leidner 1999).
In other studies, two or more types o f mediated communications are investigated. In
Why Distance Matters, Effects on Cooperation, Persuasion and Deception (Bradner
and Mark 2002), the authors chose Instant Messaging and Video Conferencing in an
attempt to simulate two ends o f the communication spectrum. In other studies it has been
found that some FtF meetings blend well with other types of communication mediums.
There is some emerging support for the notion that a mix o f communication methods
improves performance (Aiken and Vanjani 1997) mid produces higher levels o f
commitment (Alavi 1994; Alavi, Wheeler et al. 1995).
9. Team Size (TmS)

Group or team size has been shown to affect ones sense o f belonging (Williams and
Wilson 1997). A sense of belonging is critical to the development o f organizational
identity, which has been shown to have a direct influence on OCB (Shamir 1990; Pratt
1998). Group size in VTs has also been shown to affect team decision making (Baltes,
Dickson et al. 2002) and satisfaction (Dennis and Wixom 2002). Group size in virtual
work had impact on group support system processes (Dennis and Wixom 2002).
10. M ulti-Tasking (M I)
Multi-tasking is a term used to describe a person working on more than one task at a
time. It can create significant stress on a person if he or she becomes overloaded and it
can lead to less efficiency and productivity (Brillhart 2004). Cognitively distancing
oneself horn the stress created by multi-tasking and information overload is known as
absent presence, the idea that we may be physically on a street comer, but our distracted
minds are not. (Berman 2003). The absent presence is a form o f psychological distance.
Some have found that frequent interruptions affect decision making (Speier, Valacich et
al. 1999, Thompson, 2005). During meetings in the new millennium many listen to
presentations while also using hand-held PDAs to communicate with others
simultaneously. Some experts believe that multi-tasking in this way is detrimental to
productivity (Richtel 2003). While it has been shown that telecommuting can improve
satisfaction and work/life balance (Hill, Miller et al. 1998), family and other home-based
considerations may represent a form of multi-tasking that creates stresses that are difficult
to overcome (Richtel, 2003). The extent to which workers multi-task depends, in part, on
the organizations desire to increase productivity (Cascio 1993; Snizek 1995); another
key reason why virtual work is proliferating at hyperspeed.
28
11. Technical Skill (TS)

Studies have shown that a members comfort level with technology plays a role in their
interactions with distant team members (Staples, Hulland et al. 1999). Less technically
competent team members may be less inclined or able to communicate and form the
kinds o f relationship that would decrease social distance. The theory o f cognitive fit
describes the need for matching problem-solving task to problem-solving tools in order to
obtain higher levels o f performance (Agarwal, Sinha et al. 1996). Major corporations
have also found that technical and interpersonal skills are important to the selection of
VT members who are most likely to be committed to the project and to each other
(Kirkman, Rosen et al. 2002).
ILII REVIEW OF VIRTUAL TEAM (VT) STUDIES AND

DISTANCE FACTORS
In addition to the extensive literature review as discussed in the previous section and
detailed in Appendix I, a more targeted analysis was conducted to highlight how distance
is addressed in a sample of VT studies that are often cited. The studies chosen for this
analysis were taken from Powell, Picolli, and Ives literature review of 43 VT studies
(Powell, Picolli & Ives, 2005). A summary of these studies is shown in Table 1. In
Table 2 the representative studies are compared against the distance factors discussed
above. The studies highlighted by Powell, Picolli, and Ives (2005) are listed in the first
column. The distance factors are listed in the first row. A Y was marked in a cell if the
study addressed the distance factor and an N was marked if the study did not address
the distance factor.
Assumptions for Virtual Team Study Analysis

As was discussed in the previous section, VT research inherently assumes that VTs are
geographically distant (Townsend, 1998). Some meet FtF while others do not.
Therefore, for all studies listed, GD and FtF are assumed to be factors in the study. For
those investigations that included global VTs, it was assumed, although not always
specifically stated, that the study also considered TD and CD. Unless specifically stated,
all team members were assumed to be part o f the same oiganization. Therefore RD was
not a factor. In some o f the student-based studies (i.e., in the majority of the samples),
team members may have been relationally distant although this was not necessarily
stated, so it was not assumed to be a factor. If the work was described as focused on
Relationship Building, then it was assumed that the participants did not know each other
prior to the study, nor did they know any o f the same people prior to the study.
Therefore, RelD was assumed to be present.
Table 1 - Summary of Virtual Team Studies (Powell, Picolli & Ives, 2005)
Authors
Y ear of
Publication
Issues /
Variables
Examined
Task, network
structure,
hierarchy,
centralization, fit,
performance
Decision quality,
number of
alternatives, time
to reach decision,
satisfaction
Time
Frame
Subjects
Team
Size
Results
Network and
Organization Form
Theories
Ongoing
Organization
employees and
academics
66
VTs can be hierarchical and centralized from a

communication standpoint Fit between task and
structure not associated with objective performance
but is associated with satisfaction
AST
8 Week
Graduate Students
4-5
VTs took longer to reach decision, but had equal

quality and satisfaction
Proportional,
Social Role,
Expectation States
7 Weeks
Undergraduate
Students
3-4
Participation more centralized in VTs. In VTs, males

in majority-female teams had more influence, males i
majority-male teams had less influence than females.
4 Weeks
Undergraduate
Students
3-4
No difference between VT and TT in cohesiveness,

performance, and equality of participation. Leadersh
better in TT. VT better at coordination at first.
Theory
Ahuja&
Carley
1999
Archer
1990
Berdahl &
Craig
1996
Participation,
influence, gender
1998
Cohesiveness,
equality of
participation,
leadership,
coordination,
performance
Burke &
Chidambar
am
1996
Social presence,
communication,
effectiveness, easeof-use,
performance
Social Presence &

Media Richness
4 Weeks
Undergraduate
Students
TT reported greater social presence, communication

effectiveness, and ease-of-use. No difference in
performance between VT and TT.
Chidambar
am
1996
Work processes,
cohesiveness,
satisfaction
SIP, Punctuated
Equilibrium Model
4 Weeks
Undergraduate
Students
Over time, VT members will exchange enough

information to develop relational ties. Over time,
attitudes improve as does satisfaction with outcomes.
Burke &
Aytes
Authors
Year of
Publication
Issues /
Variables
Examined
Theory
Time
Fram e
Subjects
Team
Size
Results
SIO, AST
4 Weeks
Undergraduate
Students
No difference between teams decision quality. VT

more equal participation, task focus, more alternative
generated. TT better at first in conflict management,
cohesiveness; by midpoint, VT had surpassed TT.
Chidambar
am &
Bostrom
1993
Conflict
management,
cohesiveness,
number of
ahematies,
decision quality
Chidambar
am etal.
1990-1991
Conflict resolution,
cohesiveness
AST
4 Week
Undergraduate
students
Conflict resolution and cohesiveness both initially

better in TT, by time 4. VT better at both VT more
likely to think of idea as ours
Crampton
2001
Mutual knowledge,
communication
problems
Communication
Theories
7 Weeks
Graduate Students
5 types of communication problems identified from

failure of creating mutual knowledge in VT.
Eveland &
Bikson
1988
Leadership,
sstructure,
satisfaction,
communication
1 Year
Org. workers &

retirees
20
6-10 in
sub
groups
TT greater leadenhsip stability. VT leadership

fluctuated more. VT created unique structure. VT
satisfaction continually increased TT satisfaction
remained same. VT communicated more.
1994
Planning, social
conversations,
revising/writing,
coordination
difficulty, total
communication,co
mmunication
quality, perceived
fairness, perceived
project quality,
project
performance
TT more effective planning, revising/writing,

perceived fairness, communication quality. VThad
more total communication. No difference in project
performance. VT required more time, spent more tin
communicating. VT had more coordination difficult;
fewer social conversations.
Galegher&
Kraut
Contingency
Theory
Discuss several
others
4 Week
Graduate Students
Authors
Galvin &
Ahuja
Hollingshe
ad,
McGrath &
OConnor
Jarvenpaa
etal.
Year of
Publication
Issues /
Variables
Examined
2001
Communicaiton,
member status,
information
exchange,
information
content
1993
Task type, task

performance,
cumulative
experience,
changes
1998
Benevolence,
integrity, ability,
teambuilding,
trust, propensity to
trust others
Jarvenpaa
& Leidnerr
1999
Swift Trust
Johansson
etal.
1999
Communication,
coordination
Theory
Time
Fram e
Ongoing
Subjects
Org employees &

academics
Team
Size
Results
Not
given
Newcomers to team engage in greater information

seeking, established members engage in more
information providing. Established members engage
more in seeking norms and values information - new
members more likely to seek out this type of
information from private source.
4-5
No difference between VT and TT for generating and

decision making tasks. TT better for negotiation and
intellective tasks early on. Relationship between task
and technology performance more dependent on
experience with technology and team membership
rather than task type
4-5
Integrity early on important to development of trust,

benevolence over time. Team building increased
knowledge about team members but did not directly
increase trust
4-5
VTs with high trust also had: social communication,

enthusiasm, predictable communication, substantial
timely feedback, ability to cope with technical
uncertainty, initiative, social to task focus, positive
leadership, phlegmatic response to crises. Swift trust
likely a result of communications
22
Communication and coordination were biggest issues

in VT. Obstacles to coordination; power, doing it ow
way (power issues), communication predictability,
culture
Task-media fit
Task circumplex
model
Results support
theory of swift
trust
Swift trust
9 Weeks
8 Weeks
Undergraduate
Students
Graduate Students
6 weeks
Graduate Students
5 Weeks
Undergraduate and
Graduate Students
Authors
Kaiser et
al.
Year of
Publication
Issues /
Variables
Examined
2000
Performance
Kayworth
&Leidner
2000
Kayworth
& Leidner
2001-2002
Communication,
culture,
technology,
leadership,
relational links,,
satisfaction,
success
Leader role, role
clarity, leadership
effectiveness,
culture,
communication
effectiveness
Krumpel
2000
Group knowledge,
production,
communication,
content
Lind
1999
Gender, cohesion,
conflict, quality of
work,
inclusiveness
Theory
Time
Fram e
Subjects
Team
Size
Results
3 Weeks
Undergraduate and
Graduate Students
To improve performance in VT: intermediate goals a

well as final goals, similar training for all clear
structure, team maintenance activities, team building.
6 Weeks
Undergraduate and
Graduate students
5-7
VTs using more communication methods more

satisfied and more successful. Cultural differences
intensify communication and coordination problems.
Effective leadership needed. Richer communication
facilitates socialization
Leadership
Theories
5 Weeks
Undergraduate and
Graduate Students
5-7
Effective leadership associated with communication

satisfaction, role clarity, better relational skills, ability
to foster relational aspects structure
Structuration
Theory
Ongoing
Working Group of
subcommittees for
IEEE
51
Group knowledge production possible in VT. Group:

engaged in knowledge production would do better
with a leader
6-6 Weeks
Students
Women more satisfied. Felt more included and great

team cohesiveness with the VT experience than men.
NO difference in quality of work between VT and Tl
Authors
Lurey &
Raisinghani
Majchrzak
etal.
Majchrzak
etal.
Malhotraet
al
Mark
Year of
Publication
Issues /
Variables
Examined
2001
Job characteristics
selection
procedures, team
relations, team
processes,
leadership,
effectiveness,
education,
rewards, executive
leadership, tools
and technologies,
communication
2000a
Technology use,
success, task type,
conflict, shared
language/knowled
ge
Theory
Time
Fram e
Length
varied
Media Richness,
Social Presence,
ask Circumplex
Subjects
Team
Size
Results
Organization
employees
Varied
(3-15 in
12
separate
teams)
Team processes and ember relations had strongest

relationship to performance and satisfaction.
Selection procedures and executive leadership style
moderately related to performance and satisfaction.
FtF or phone used for abigous tasks, managing

conflicts, brainstorming, clarifying goals, etc. VT
used for routine tasks of analysis, project status. FtF
meetings early on created a shared language between
members -= this enabled ambiguous tasks to be
completed later by VT
Using collaborate technology creates several

misalignments with pre-existing structure and
environment VTs need to adapt all 3 structures technology, o. environment, and work group structure
10 month
Organization
employees
10 month
Organization
employees
2000
Shared
understanding,
knowledge sharing
10 month
Organization
employees
3 mgt practices contribute to success of VT: strategy

setting, technology use should facilitate shared
knowledge and collaborative use, restructuring work
without changing core needs
2001
Socialization,
technology
participation, team
culture, integrating
team members
Over 6
months
Organization
employees
8-15
Key challenges of VT of participation, team culture,

and integrating remote work discussed
2000b
AST
Authors
Year of
Publication
Issues /
Variables
Examined
2001
Processes,
performance,
communication,
cohesion, culture,
technology use,
decision quality,
commitment
McDonoug
h etal.
2001
Behavioral
challenges, project
management
challenges,
performance
MonyoyaWeiss et al.
2001
Process structure,
conflict
performance
2001
Adaptation
(technology, work,
socialX structure,
specialization,
coordination, task,
learning
Maznevski
& Chudoba
Qureshi &
Vogel
Ramesh&
Dennis
2002
Coordination,
work processes
Theory
AST
Conflict theories
Time
Fram e
Long-term
Subjects
Organization
employees
Team
Size
Results
8,9, & 12
Effective VTs have high commitment, high

cohesiveness, effective processes, satisfaction with
decisions, continuous communication, task-technolog
fit. Cultural difference affected coordination. Regulf
FtF meetings provided necessary coordination.
Ongoing
Organization
employees
Did not
report
3 weeks
Undergraduate
students
Behavioral challenges greatest in GVT, then VT, ther

TT. Project management challenges least in TT.
Performance greatest in TT then VT, then GVT.
Greater project management challenges are associate*
with lower performance for all 3 types of teams.
Project management challenges more a function of
distance between members than cultural differences.
Avoidance, compromise conflict has negative
relationship with performance. Process structure
weakens negative effect on performance for
avoidance, compromise conflict. Competition,
collaboration conflict has positive relationship with
performance.
Provide framework of adaptation and organization

challenges in VTs. Review of current research on
adaptation.
Media Richness,
Media
Synchranicity
3 month 11
month
2 Years
Organization
employees
3
6
10-56
VTs may operate better as object-oriented teams decoupling team members through use of well define
processes, inputs, and /or outputs rather than trying tc
tightly couple members may improve coordination in
VTs.
Authors
Robey et
al.
Sarker&
Sahay
Sarkeret
al.
Savicki et
aL
Shardaet
al.
Year of
Publication
Issues /
Variables
Examined
2000
Learning,
management,
performance,
communication,
technology use,
FtF meetings
2002
Time, space,
culture, technical
expertise,
communication,
coordination,
socialization
2001
Technology,
norms, social
practices, team
development
sages, frames of
reference,
collaboration
Theory
Learning Theories
Time
Fram e
Subjects
Team
Size
Results
Communication improves cultural understandings

which improve coordination. FtF meetings needed tc
gain respect, trust, and interpersonal relations. Choic
of technology based on many factors. Learning cant
effectively accomplished; in VT
3+years
Organization
employees
14 Week
Students
8-10
Strategies for dealing with challenges involved with

VTs
14 Weeks
Students
8-10
Communication, collaboration, social norms all adapl

and change in different stages of team development
Adapted Grounded
Theory
Communication
Theories
Structuration
1996
Gender, task,
communication,
team development
4 Weeks
Undergraduate
students
4-6
Female-only VTs are more satisfied, send more word

have better team development, and self-disclose more
than male-only or mixed-gender VTs
1988
Effectiveness,
decision time,
confidence,
number of
alternatives
8 Weeks
Undergraduate
students
VT greater effectiveness and took longer to make

decision. No difference between VTs and TT on
confidence, number of alternatives generated.
Authors
Year of
Publication
Issues /
Variables
Examined
2001
Communication,
attitudes,,
technology use
2000
Cohesiveness,
collaboration,
perceived decision
quality, perceived
decision
satisfaction
Van
Rysson&
Godar
2000
Culture,
technology,
communication
effectiveness
Walther
1995
Relational
communication
Walther&
Burgoon
1992
Relational
communication
Suchan&
Hayzak
Tan et al.
Theory
Time
Fram e
Subjects
Team
Size
Results
Communication most important factor for success,
seen as strategic activity to be considered daily.
Mentoring program enabled socialization of member:
Leaders used FtF meetings to help develop trust
Culture and reward system supported information
sharing.
VTs receiving dialogue training had higher

cohesiveness, collaboration, perceived decision
quality, perceived decision satisfaction Differences
remained over time.
3 Months
Undergraduate
Students
Cultural differences created problems for UG student

in areas of socialization, communication, coordinatio:
Training needed both in how to communicate and ho1
to use technology
SIP
5 Weeks
Undergraduate
students
VTs became less task-oriented and less formal over

time. VTs perceived greater immediacy / affection /
inclusion, communication of attitude likeness than di<
TT
SIP
SPT
5 Weeks
Undergraduate
students
VTs increased in several relationship dimensions to

more positive levels - approaching or surpassing TT
levels
Dialogue Theory
4 weeks
Undergraduate
Students
Authors
Warkentin
& Beranek
Warkentin
etal.
Year of
Publication
Issues /
Variables
Examined
Theory
Time
Fram e
Subjects
Team
Size
Results
1999
Communication
training,
interaction,
process, trust,
commitment to
team goals
Discuss many
6 weeks
Graduate students
3-4
By midpoint of VT life, teams with communication

training had higherr trust, commitment to team goals,
openness of expression, better interaction processes
1997
Performance,
relational llinks,
information
exchange
TIP
3 weeks
Undergraduate
students
TT had higher relational links, performance. No

differences on effectiveness of information exchange
Table 2 - Comparative Table of Research and Distance Factors

Social
Distance
(SD)
Relationship
History
(RH)
Inter
dependence
Face
to
Face
(FtF)
Team
Size
(TSZ)
Multi
tasking
(MT)
Technical
Skill
(TS)
Study
Geographic
Distance
(GD)
Temporal
Distance
(TD)
Relational Cultural
Distance
Distance
(RD)
(CD)
Ahuja &
Carley (99)
Archer (90)
Study
Berdahl &
Craig (96)
Burke &
Aytes (98)
Burke &
Chidambaram
(96)
Chidambaram
& Bostrom
(93)
Chidambaram
et al. (90-91)
Crampton
(01)
Eveland &
Bikson (88)
Galegher &
Kraut (94)
Galvin &
Ahuja(Ol)
Hollingshead
et al. (93)
Jarvenpaa &
Leidner (99)
Jarvenpaa et
al. (98)
Social
Distance
(SD)
Relationship
History
(RH)
Inter
dependence
Face
to
Face
(FtF)
Team
Size
(TSZ)
Multi
tasking
(Ml)
Technical
Skill
(TS)
Geographic
Distance
(GD)
Temporal
Distance
(TD)
Relational Cultural
Distance
Distance
(CD)
(RD)
Geographic
Distance
(GD)
Temporal
Distance
(TD)
Relational Cultural
Distance
Distance
(RD)
(CD)
Social
Distance
(SD)
Relationship
History
(RH)
Inter
dependence
Face
to
Face
(FtF)
Team
Size
(TSZ)
Multi
tasking
(M l)
Technical
Skill
(TS)
Krumpel (00)
Lind (99)
Mark (01)
Maznevski &
Chudoba (01)
Study
Johansson et
al. (99)
Kaiser et al.
(00)
Kayworth &
Leidner (00)
Kayworth &
Leidner (0102)
Lurey &
Raisinghani
(01)
Majchrzak et
al(00a)
Majchrzak et
al (00b)
Malhotra et
al. (01)
Geographic
Distance
(GD)
Temporal
Distance
(ID)
Relational
Distance
(RD)
Cultural
Distance
(CD)
Social
Distance
(SD)
Relationship
History
(RH)
Inter
dependence
Face
to
Face
(FtF)
Team
Size
(TSZ)
Multi
tasking
(MI)
Technical
Skill
(TS)
Tan et al. (00) Y
Van Ryssen
& Godar (00)
Study
McDonough
et al.(01)
MontoyaWeiss et al.
(01)
Qureshi &
Vogel
Ramesh&
Dennis (02)
Robey et al.
(00)
Sarker &
Sahay (02)
Sarker et al.
(01)
Savicki et al
(96)
Sharda et al.
(88)
Suchan&
Hayzak (01)
42
Study
Geographic
Distance
(GD)
Temporal
Distance
(TD)
Relational Cultural
Distance
Distance
(RD)
(CD)
Social
Distance
(SD)
Relationship
History
(RH)
Inter
dependence
Face
to
Face
(FtF)
Team
Size
(TSZ)
Multi
tasking
(MU
Technical
Skill
(TS)
Walther &
Burgoon
Walther (92)
Warkentin &
Beranek (99)
Warkentin et
al. (97)
References in Table 1:
(Ahuja and Carley 1999), (Archer 1990), (Berdahl and Craig 1996), (Burke and Aytes 1998), (Burke and Chidambaram 1999),
(Chidambaram and Bostrom 1993), (Crampton 2001), (Eveland and Bikson 1988), (Galegher and Kraut 1994), (Galvin and
Ahuja 2001) , (Hollingshead, McGrath et al. 1993), (Jarvenpaa and Leidner 1999), (Jarvenpaa, Knoll et al. 1998),
(Johansson, Dittrich et al. 1999), (Kaiser, Tullar et al. 2000), (Kayworth and Leidner 2000), (Kayworth and Leidner 2002),
Krumpel (OOXKrumpel 2000), (Lind 1999), (Lurey and Raisinghani 2001), (Majchrzak, Rice et al. 2000), (Majchrzak, Rice et
al. 2000), (Malhotra, Majchrzak et al. 2001), (Marie 2001), (Maznevski and Chudoba 2001), (McDonough, Kahn et al. 2001),
(Montoya-Weiss, Massey et al. 2002), (Qureshi and Vogel 2001), (Ramesh and Dennis 2002), (Robey, Khoo et al. 2000),
(Sarker, Lau et al. 2001), (Sarker and Sahay 2002), (Savicki, Kelley et al. 1996), (Sharda, Barr et al. 1988), (Tan, Wei et al.
2000), (Van Ryssen and Hayes godar 2000), (Walther and Burgoon 1992), (Walther 1995), (Warkentin and Beranek 1999),
(Warkentin, Sayeed et al. 1997)
44
II.III EXECUTIVE INTERVIEWS

It became evident early on that the literature alone did not include some real-world
conditions surrounding virtual workers and organizations. Therefore, a decision was
made to combine the literature review with interviews with senior executives o f major
corporations who leverage VTs within their organizations. This work was made part of
the review of relevant research and is therefore included in this section.
The process used to identify, conduct and analyze interview information was as follows:
1.
Identify executives at large, global corporations;
2.
Design a discussion guide for those interviews (See Appendix 3 for a copy o f the
discussion guide);
3.
Conduct the interview either via the phone or in person using the discussion guide
designed for this purpose;
4.
Analyze the interview results to find patterns o f issues;
5.
Using the interview results as a way to further formulate theory and test
hypotheses about virtual work.
This approach is supported by methods experts Eisenhardt (Eisenhardt, 1984) and Yin
(Yin, 1990) and their recommended procedures and processes were followed.
In Table 3 below is a summary o f the sample o f companies and executive profiles used in
this part o f the research.
Table 3 - Summary of Sample for Executive Interviews
Key Highlights of From Executive Interviews

A number o f themes emerged from the executive interviews. Geographic and time-zone
issues were certainly o f concern to those interviewed. However other factors were also
impacting perceptions of project success and in some cases, outsourcing partner
performance.
Key highlights included, but are not exclusive of:
1.
Organizational culture differences along with national cultural differences affect

decision making and performance.
2.
A paradox is emerging. Leaders and managers are using more VTs and
outsourcing partnerships. From the leader point of view, because responsibilities
46
for major projects are being pushed-down, it is expected that the VT members
will be more vocal about issues that may have a negative impact on the project.
However, the virtual work environment does not necessarily encourage more
information sharing. To the contrary, in many cases, due to issues like power
distance and leader distance (two forms o f SD), some members are much less
likely to speak up when they know that something is wrong. Therefore, while
leaders are trying to extract efficiencies out o f virtual and outsourced
relationships, VT members may be less likely to cooperate. In these cases there is
more work for managers. In more severe situations, these factors cause projects
to be delayed unnecessarily or worse.
3.
VT members do not always understand what their missions are. This happens for
a number o f reasons. CD, GD, misinterpretation, SD, lack of a RH and more can
all contribute to a hazy sense of the mission. If members do not clearly
understand their goals in the context of a broader business objective, leaders find
that productivity is negatively affected. As a result, VT members sometimes lack
a sense o f interdependence with their fellow team members regardless o f whether
they work for the same company or work for different organizations.
4.
Trust is negatively impacted by virtue o f being distanced; both physically and

emotionally. Some interviewees described this as a function o f individual
differences but the majority o f them believed that a lack o f a working RH coupled
with SD, CD and interdependence factors were fueling this negative trend. When
taken together with the relatively small number o f FtF interactions and extensive
47
MT, the propensity to trust those whom one rarely sees, does not know, mid may
be of a different rank and culture, can have major yet unmeasured impact on
performance.
5. Many o f the management tools and models are not helpful for leading VTs.
Almost all o f the executives interviewed expressed concern that there are very
few models, which address the complexity o f issues faced by VTs, and tools and
frameworks that can help managers with their VTs and relationships.
The executive interviews were combined with the literature review to develop the VDM
which is described in detail in the next Chapter.
II.IV LIMITATIONS OF THE RESEARCH

The research to date covers a wide array o f topics and conditions. However, many o f the
samples are not easily generalized. For example, 28 out o f the 43 articles reviewed in
Powell, et al., 2004 use student samples. While students can work in VT settings, it is
difficult to extend the findings from such samples to organizational settings where VT
members are working under conditions that are significantly different from student
projects. The present investigation uses cases from a variety of corporations and team
members enhancing the body o f research in this field
One can also see that issues such as SD, RH, Interdependence, MT and TmS are rarely
focused on as part o f the existing investigations. However the executives interviewed for
48
this research cited these factors as contributing to VT performance. Therefore, these

factors were also considered in the study.
Lastly, most o f the research uses information technology as the backdrop for virtual
work. A smaller number o f research projects are done using a management perspective.
While these two research streams are important, the issues of virtual work involve an
integral combination of disciplines. The VDM takes this into account.
49
Previous studies in management (Thompson, 1967), technology (Watts, 2002), distance

(Krugman et al., 200S), social (Mark, 2002), and psychological research (Latane, 1996),
have all shown that perceived distance matters and has an impact on organizational
outcomes due to socio-emotional factors. However, as the review o f relevant research in
the previous chapter shows, most of the VT research does not consider distance on these
important axes. GD, TD and RD are well represented. However, less evident perceptual
distance constructs are not readily investigated.
The executive interviews done for this investigation helped to illuminate what some of
these factors might be. Conducted as part o f the review o f relevant issues, the interviews
uncovered examples o f relationships between such issues including, but not exclusive of,
CD, SD, RH and VT success.
Given the literature review and executive interview findings, a proposed model, named
the VDM, was developed. Virtual Distance is defined as the perceived distance between
two or more people, groups or organizations brought on the pervasive and persistent use
o f computer mediated communication and work technology. VDM is a multi
dimensional, integrative construct that brings together many distance concepts that to
date, have largely been studied in isolation from one another.
n il CONSRUCTS AND OPERATIONAL DEFINITIONS
50
The VDM constructs, operational definitions, number o f survey items used, sample
survey questions and the source of those items are listed in Table 4 below:
Table 3 - Construct Summary
Team members are

physically in different,
cities, towns, states,
countries, etc. (Members
that are in the same
building but may be on
different floors (or parts of
a floor) are considered to
be co-located).
Some or all of the team
members are in different
time zones
members work for
different organizations

members have different
demographic,
organizational, values and
/or communication style
differences
Team members were all in <me

location
Karen Sobel
Lojeski
Most team members were in

the same time zone
Karen Sobel
Lojeski
All of the team members were

from the same company
Karen Sobel
Lojeski
Cultural Distance I:
Heterogeneity
Team members were
originally from different
countries than mine

members are in different
hierarchical or social strata
within the context of the
team or within the confines
of the networked
organization
Cultural Distance II:

Communications
Misunderstandings frequently
occurred because of cultural or
language differences
Karen Sobel
Lojeski
Cultural Distance III:

Values
I understood the values and
work habit of my teammates
Status was derived mainly

from what people contributed,
not from tide, affiliation or
position
Karen Sobel
Lojeski
51
H
s
m
Si!
m

members have no common
working history with each
other or do not know some
of the same people
members do not perceive
that their goals and / or
tasks are interdependent
The team meets face to

face at least some of the
time; otherwise,
communication is done
through technology
mediation
members are working on
other projects and have
multiple deliverables due
at any given point in time
Team members have the

necessary technical skill
and support to do their job
Number of members on the

team
mm
3
I knew most of the other team

members prior to the start of
the project
The tasks and objectives of

each project member
depended upon the
performance of other team
members
Karen Sobel
Lojeski
Karen Sobel
Lojeski
Karen Sobel
Lojeski
The team had regular face to

face meetings
Karen Sobel
While working on this project Lojeski
I was assigned to several other
projects
Karen Sobel
I was skilled at using the
Lojeski
Internet and other electronic
media for communicating with
the team
Number of individuals on the
team
Karen Sobel
Lojeski
In addition to the individual scales, respondents were asked to make an overall rating to
indicate how close or distant you felt to the other members o f the project team using a
5-point scale, where 5 = very distant and 1 = very close.
Another goal of this research was to determine whether Virtual Distance impacted project
success (PS). To explain how this occurred, three other mediating variables were
included in a tentative model. These were Clarity, Trust and Organizational Citizenship
Behavior (OCB).
52
A summary o f these constructs, operational definitions, number of survey items used,

sample survey questions and the source of those items are listed in Table 5 below:
Table 4 * Summary o f Trust, Clarity and OCB Constructs
Individuals found their

team members to be
trustworthy
I could rely on those with

whom I worked in my team
Jarvenpaa &
Leidner (1999)
10
Other team members

occasionally helped out if
another team member fell
behind in his/her work
Podsakoff,
Aheame &
Scott (1997)
The roles and goals of

team members were clear
The project goals were very

clear
White (2002)
The project met time,

budget and customer
satisfaction objectives
The project met or exceeded

management's expectations
with respect to schedule
Lynn & Reilly

(2002)
Team members went

beyond their formal job
roles to help other team
members
IIU HYPOTHESES
Based on the review of the relevant research combined with the executive interview
insights, the following hypotheses were constructed.
The Virtual Distance factors were posited to have the following relationships to perceived
distance:
H la: Cultural Distance (CD) w ill be significantly andpositively related to perceived
distance;
H lb : Social Distance (SD) w ill be significantly andpositively related to perceived
distance;
H lc: Relationship Distance (RelD) w ill be significantly andpositively related to
perceived distance;
53
H id : Interdependence Distance (ID) w ill be significantly and positively related to

perceived distance ;
H ie: Face to face (FtF) interactions w ill be significantly and negatively related to
perceived distance;
H lf:
Team size (TmS) w ill be significantly andpositively related to perceived distance;
H lg: Multi-tasking (M I) w ill be significantly andpositively related to perceived

distance;
H lh : Technical Skill (TS) w ill be significantly and negatively related to perceived
distance.
III.IL Virtual Distance and Trust, Clarity, OCB and PS

When taken in sum, much o f the VT research has shown no significant results regarding
the success of projects or team performance (Gopal and Prasad, 2000, Powel, et al.,
2005). In addition to developing the construct Virtual Distance, this thesis was also put
forth to show that Virtual Distance would have a significant and negative relationship to
PS. It was hypothesized that Virtual Distance would better explain and predict PS
because Virtual Distance is a multi-dimensional construct built from a broader set of
literature from multiple disciplines, along with real-world factors known to cause
problems for VTs. Virtual Distance was posited to have a significant and negative
relationship to Clarity, Trust and OCB. Clarity and OCB were hypothesized to have a
positive and significant relationship to PS.
Clarity
The relationship between group goals and group performance has been well documented
(CLeary-Kelly, Martocchio et al. 1994). However, as teams become more virtual, the
absence of experiences gained from FtF interactions may lead to difficulties in creating
54
and maintaining a shared vision and commitment to goals (Handy 1995; Kezsbom 1999;
Seo, Barrett et al. 2004). In todays workplaces, especially among team members who
are geographically or temporally distant, individual goals may become less dear if they
are not directly attached to some sort o f organizational mandate (Manzevski and Chudoba
2000). This could potentially lead to less collaborative effort as well. It was expected
that Virtual Distance would negatively influence the extent to which team members
understand goals and objectives.
H2: Virtual Distance w ill be significantly and negatively related to Clarity
Trust
Trust has received considerable attention, especially in relation to VTs and innovation.
Research has found that perceptions o f physical distance impacted individuals
willingness to trust counterparts in computer-mediated interaction (Jarvenpaa and
Leidner 1998; Bradner and Mark 2002). Jarvenpaa et al. reported that timely and
consistent communication (especially task-oriented) was likely to engender trust within
VTs. The implications o f trust perceptions for team performance are less clear. Lynn &
Reilly (2002) found that members o f VTs reported lower levels o f trust and that these
lower levels o f trust correlated with lower levels o f innovation and collaborative behavior
(Lynn and Reilly 2002). In their investigation of trust on levels o f commitment and
innovation, authors Ruppel and Harrington wrote, He (Hosmer) suggests that trust and
commitment result in enthusiastic, cooperative and innovative effort beyond that gained
from simple financial incentives or contracts. Only trust can assure people that they will
55
not be overly penalized for new ideas that fail or that they are free to try improvisations
leading to competitive innovations in products, markets, methods, and technologies.
(Ruppel and Harrington 2000). Similarly, a survey o f top innovators (Milton 2003)
found that trust between people was the single most significant factor in differentiating
successful innovators. Others have reported that trust perceptions can impact
performance when CD is considered. It was posited that Virtual Distance would have a
negative relationship to Trust.
H3: Virtual Distance w ill be significantly end negatively related to Trust
Organizational Citizenship Behavior (OCB)

Organizational Citizenship Behavior (OCB) is defined as a set o f behaviors team
members exhibit that go beyond the scope o f their job descriptions and formal roles and
duties (PodaskofF, 1997). There is strong support for the relationship between trust and
OCB (Deluga 1995) and also for relationships between trust and organizational
commitment (Knights and McCabe 2003). To date however, no studies have attempted to
link this relationship to individuals perceptions of distance. Moreover, discussion o f
OCB and commitment are conspicuously absent from the growing body o f VT research.
Therefore, it followed that Virtual Distance was likely to negatively influence OCB.
H4: Virtual Distance w ill be significantly and negatively related to OCB and Trust will
be significantly andpositively related to OCB.
56
Project Success (PS)

The dependent variable in the proposed model was PS. PS can be influenced by many
different factors. Barczak, et al. assert that the frequency o f FtF meetings among global
team members can impact project success, in part because keeping a project on schedule
is dependent on a certain focus and discipline that is difficult to maintain with
geographically dispersed team members (Barczak, et al., 2003). Smith contends that the
perception o f PS can also be affected by the perceived distance from ownership o f the
project (Smith 2002) which, as was discussed, may be linked to Virtual Distance and its
influence on Clarity, Trust, and OCB. Loo (1996) asserts that physical proximity is also
a key variable for PS regarding cooperation, communication, and a clear set of
performance standards and goals (Loo 1996). Following previous works on PS (Cooper
and Kleinschmidt 1987; Lynn and Reilly 2002, Lynn, Chen, Reilly, 2005), PS was
measured using team member and executive managers ratings on three project
outcomes: 1) On-time delivery; 2) On-budget delivery; and 3) Customer Satisfaction.
Virtual Distance is likely to negatively impact Project Success through the mediating
variables described above.
H5: Virtual Distance w ill have a negative and indirect relationship to PS through direct,
negative relationships with Clarity and Trust
The hypothesized relationships in the research model are depicted in Figure 1 below:
Figure 1 - Model of Virtual Distance and Mediating and Dependent Variables
Clarity
Virtual
Distance
Trust
OCB
58
The research design was configured as a multi-step process to better understand the many
varying factors that can impact VT success. After posing the research question a review
o f relevant research was conducted. As discussed in Chapter Q, this review illuminated
gaps related to real-world conditions. Therefore, a set o f executive interviews were
conducted and case studies were compiled to augment the literature review. These first
two steps were iterative. As issues surfaced during the executive interviews, additional
literature reviews were performed. Once the issues from the executive interviews and
literature reviews began to converge, the VDM was developed. Next a questionnaire was
developed to measure Virtual Distance. It was pre-tested with a small sample of 36
cases. The survey instrument was refined and a larger sample was surveyed. The results
were then analyzed using correlational techniques and Structured Equation Modeling
(SEM). These steps are detailed in the sections that follow.
Questionnaire Development
Based on a review of the literature and the executive interviews a preliminary
questionnaire was designed to measure each of the hypothesized distance components
and the other major variables in the model. The questionnaire was administered to a
sample of 36 Masters students, all of whom had been involved in recent projects
involving computer mediated communication. Respondents were asked to complete a
questionnaire describing their organization, current position and their experiences with a
recently completed project. Eleven scales measuring each of the hypothesized distance
components were included. Item analyses and scale intercorrelations were examined and
final revisions to the questionnaire were made.
59
IV J LARGE SURVEY SAMPLE AND DATA COLLECTION

The large survey sample included employees who represent manager-level and above
workers at major corporations in the New York/New Jersey area. The sample included a
mix of project team members obtained through recruiting efforts by the researcher and
individuals in the Technology Management Masters Program at The Stevens Institute o f
Technology, Hoboken, New Jersey. For the corporate survey, a research overview was
sent out for review by a senior executive at major corporations (See Appendix 2). After
meeting with the senior executive, his/her commitment to participate in the study was
obtained in all o f the cases where the researcher met with the corporate leader. The
managers were asked to provide the researcher with a list of projects and project team
members. Projects were loaded into a database specifically designed for this research.
Emails were sent to project team members directly by the researcher with instructions on
how to take the survey. Participants were directed to a website, developed by a company
hired by the researcher, and the survey was completed on-line. For The Stevens Institute
o f Technology sample an overview o f the research project was given in class and data
were collected via a paper questionnaire.
The final sample consisted o f the following characteristics represented below:
\i|V jo .>i>iuu<>.>>><!
61
IV.IIDATA ANALYSIS
Means, standard deviations and frequency distributions were computed for all variables.
A correlation matrix was computed for all variables and an item analysis was conducted
on all scales. Internal consistency reliability for all variables was also estimated. A twostep procedure was used to develop the Virtual Distance Index (VDI). First, an analysis
o f the correlations between each of the hypothesized Virtual Distance factors was used to
test Hypotheses la through Ih. Second, a simple linear modeling technique was applied
to develop the VDI by summing the standard z-scores (with appropriate algebraic sign)
for each variable in the VDM. The use o f such simple linear models has considerable
precedent in psychological research (e.g., Dawes, 1979, Karran & Barringer, 2002) and
allowed the incorporation o f a more diverse and reliable set of factors than simply using
the overall VDM question.
The overall model depicted in Figure 1 was tested with a Structural Equation Model via
LISREL 8 software (Jdreskog and SOrbom 2001). All path coefficients were assessed for
significance and the overall model was assessed using Comparative Fit Indices as
described in Kelloway (1998). Fit Indices included the Root Mean Square Error of
Approximation, Comparative Fit, Adjusted Goodness o f Fit and Non-Normed Fit.
62
This chapter details the results o f the analysis o f the data collected in the survey process.
Statistical analysis was performed using SPSS Version 10 and Microsoft Excel 2002.
V.IDATA CLEANSING AND CASE ELIMINATION SUMMARY

The initial database contained a total o f360 cases. 72 cases were collected using a paper
survey that was filled out during the course o f class time by Masters degree students at
The Stevens Institute of Technology in the Spring semester, 2004. The remaining 298
cases were collected online from team members at global corporations headquartered in
the United States from October 2004 through February 2005. 10 cases were eliminated
because they were identified as Guest entries for use by those curious about the survey
but not participating in the research. 48 cases w ee eliminated because they were
duplicate entries in the database caused by people attempting to complete a survey that
had already been finished. Out of the remaining 302 cases, 244 cases were complete for
Cultural Values (CV), Cultural Diversity (CDiv), Social Status (SS) and Contribution
Status (CS). 235 cases were complete for RelD, FtF and MT. 230 cases were complete
for ID and TS. 215 cases were complete for the overall VDM question. 190 cases were
complete for TmS. A summary of the case elimination process is shown in Table 6
below.
63
Table 5 Summary of Case Elimination
Starting
Number
of Cases
Ending
Number of
Cases
360
350
350
302
302
190
Reason for exclusion
10 Cases eliminated due to Guest and not research

participant
48 Cases identified and eliminated due to duplication of data
entry by participant
112 Cases eliminated because of missing data on at least one
Virtual Distance variable. In this case, Team Size was the
limiting variable with all other variables having over 200
full cases
V.1.1 PARTICIPANT CHARACTERISTICS

Descriptive characteristics of the data included industry, age, educational background,
gender, role on project, title, primary work location, functional organization, number o f
employees and organizational tenure. There were a total 18 companies and 115 project
teams represented.
64
V.1.2 VARIABLE SUMMARY

After checking all item scores for missing data and outliers, exploratory factor analyses
were performed on each o f the hypothesized predictor variables in the VDM using
principal component extraction with Varimax rotation in SPSS. There was evidence that
the variable described as CD in the proceeding chapters factored into two variables that
were named Cultural Values (CV) and Cultural Diversity (CDiv). CV refer to the extent
to which team members perceive their value systems to be similar or different to others
on the team. CDiv is the extent to which demographic differences based on geographic
and language factors impact team members. The variable initially described as SD
factored into two variables that were named Social Status (SS) and Contribution Status
(CS). SS refers to the formal position o f team members. CS refers to informal status or
the extent to which contribution to the team provided status. All other variables showed
only one principal component.
The preliminary set of variables used in the first analysis was as follows:
Cultural Values (CV)
Cultural Diversity (CDiv)
Social Status (SS)
Contribution Status (CS)
Relationship Distance (RelD)
Interdependence Distance (ID)
Face to Face (FtF)
Multi-tasking (MT)
65
Technical Skill (TS)
Team Size (TmS)
Perceived Distance (VDM)
V.II PRELIMINARY ANALYSIS OF VIRTUAL DISTANCE

VARIABLES
After sub-dividing CD and SD into their respective variables, namely, CV, CDiv, SS and
CS, the means, standard deviations and intercorrlelations for all o f the variables listed
above, were computed. 190 cases were analyzed using a LISTWISE comparison. Table
7 below shows the results o f this analysis. Alphas for each variable are shown on the
diagonal and ranged from .52 to .86. The overall levels o f intercorrelations are relatively
low providing evidence that the variables described are distinct, separate constructs.
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67
All but three VDM variables were significant at p < .01. MT was significant at p < .05.
SS and TS were not significant.
VIII. FINAL ANALYIS OF CONSTRUCTS

Following the analysis o f the variables and VDM, Virtual Distance was computed and
captured in the Virtual Distance Index or VDI. VDI was computed as an equally
weighted linear composite o f the variables in the VDM. Each o f the variables in the
model was first converted to a standard z-score and all scores were averaged with
appropriate positive or negative sign so that higher average VDI scores indicated greater
Virtual Distance.
The means, standard deviations, reliabilities and intercorrlelations for all o f the variable
constructs in the model were then computed. The results o f this analysis are shown in
Table 8 below. Alphas for each variable are shown on the diagonal and ranged from .66
to .84.
68
Table 7 - Means, SD, Reliabilities) Intercorrelations for Model Variables
Standard
VDI
Deviation
Mean
Trust
OCB
Clarity
-9.8543E-03
.5147
(90)
Trust
2.0193
.7780
-.554(**)
(.71)
OCB
3.6132
.5299
-,406(**)
.451(**)
Clarity
3.6304
.7151
-,373(**)
,475(**) ,433(**)
Project
Success (PS)
3.4563
.8633
-.239(**)
,317(**) ,418(**) ,398(**)
VDI
Project
Success
(PS)
(.82)
(.66)
** Correlation is significant at the 0.01 level (1-tailed).

Cronbachs alpha shown for all variables except VDI. VDI
reliability was estimated as 1 - VEi/Vt; where VE is the
error variance for each of the eight components and V is the
variance for VDI
Reliabilities for all variables are shown in die diagonal
V.III.1 STRUCTURED EQUATION MODELING (SEM) RESULTS

Structural Equation Modeling (SEM) was used to test the overall model shown in Figure
1. The hypothesized model was tested with LISREL8. Figure 2 shows the results o f the
SEM analysis for the hypothesized model with standardized path coefficients.
(.84)
Figure 2 - SEM Model
.423
PS
Virtual
Distance
-.640
Trust
.205
OCB
.479
-.338
The most common measure o f absolute fit is the chi-square (x2)test, which is used to
determine whether there is a difference between observed and predicted covariance, with
a lower chi-square indicating a better fit. Another absolute fit test is the Root Mean
Squared Error o f Association (RMSEA). This test is based on an analysis o f the
covariance residuals, which are the differences between the predicted and observed
covariance. A value below 0.10 indicates a good fit (Steiger, 1990). An additional
absolute fit test is the Goodness o f Fit index (GFI) that measures how much better the
model fits relative to no model at all. Values are between 0 and 1, with scores greater
than 0.90 generally indicating a good fit (Kelloway, 1998, p. 27]. Because sample size
plays a major rol in absolute measures of fit *hree measures o f comparath * fit were
used. The Comparative Fit Index (CFI) and Normed Fit Index (NFI) and Non-normed Fit
*
Index (NNFI) measu.c how much better the model fits compared to a model in which all
observed variables are uncorrelated. A value o f 0.90 or greater generally indicates a good
fit (Kelloway, 1998, p. 31).
70
All path coefficients were significant (p<.01). The model had a good fit to the data
(RMSEA = .091, CFI = .982, NFI = .966, NNFI = .941). In sum the results showed that
VDI has a significant direct effect on Clarity, Trust and OCB. Trust has a significant
direct influence on OCB. OCB and Clarity have significant direct effects on overall PS.
A second model was run to ascertain whether there would be a better fit with the data if a
direct path from Virtual Distance to PS was included. A chi-square test of the
improvement in fit was not significant ($ . = 0.658, df=l) and other indices showed that
the
alternative model was not as good a fit to the data (RMSEA =.116, NFI= 969, NNFI =
.901, CFI = .980).
71
V.JV SUMMARY OF HYPOTHESIS TESTS

The results of the hypotheses described in Chapter in are summarized in Table 9 below.
Table 8 - Summary of Hypotheses
Hypothesis
H I: The factors of VDM will have the
following relationships to overall
perceived distance:
H la: CD will be significantly and
positively related to perceived
distance
H lb : SD will be significantly and
distance
H lc: RelD will be significantly and
distance
H id : ID will be significantly and
distance
H ie: FtF interactions will be significantly
and negatively related to perceived
distance
H lf: TmS will be significantly and
distance
H lg: MT will be significantly and
distance
H lh : TS will be significantly and
negatively related to perceived
distance
H2: VDI will have a significant and
negative relationship to Clarity
H3: VDI will have a significant and
negative relationship to Trust
H4: Trust will have a significant and
positive relationship to OCB
H5: Clarity and OCB will have a direct,
significant and positive relationship to
Supported (Yes/No)
Supported
Partially supported
Supported on Contribution Status
Not Supported on Formal Status
Supported
Supported
Supported
Supported
Supported
Not supported
Supported
Supported
Supported
Supported
72
Hypothesis
Supported (Yes/No)
Success
V. V IN THEIR OW N WORDS
In addition to the survey items, participants were offered the chance to express any
comments they felt were important to the discussion. Table 10 is a partial list o f these
comments. The first column, labeled Had Impact reflects a sampling of comments
from those that felt that working FtF versus virtually was generally better. This group
also widely believed that distanced team members created challenges for them. The
second column, labeled Had No Impact reflects a sample of comments from those that
felt working virtually was a positive or neutral experience. This group predominantly
thought that working virtually did not make a major difference for them. While not all
participants provided comments, the majority o f comments reflected a preference for
working FtF.
Table 9 - Selected Quotes from Comments Section of Survey
It is easier to plan the work when in the same location. It had no effect, because the vendor is in Canada, in the
Virtual sessions take more time and planning.
same time zone and not on the other side of die world.
For the distant people, the key to relationship building is

communication to build up trust between the parties.
Another key ingredient is listening we must be hble to
listen to other parties andunderstand their business
issues, etc to work effectively together.
. . . ..
,
E v f ^ w o r i o n g ta the same location, not all
sent representation to the weekly meetmgs.
Because some team members were located in India, time

was wasted waiting for resolutions to issues. When
programs were tested by local team members and issues
were found, it required an extra day for each occurrence
to be resolved because of die time zone difference.
Distance is not a problem. I am on die best team, have

the kindest, most considerate co-workers imaginable and a great leader who is always positive and
supportive. We are all very lucky.
It is more productive working in the same location
Virtual is better, faster and more productive - It saves

transportation costs, saves transportation time, increases
the available time for die employee to work, and is
generally less stressful.
It became apparent during die project that the team

members working in distant locations were not
competent. This significant lack of programming skills,
combined with long turnaround times for code
corrections, time-zone differences, and lack of regular
efficient communication between on-shore and off-shore
development resulted in extreme difficulties that
jeopardized the project As a result, the onshore team
had to put in extended hours and essentially had to
rewrite most of die code that was done by the offshore
team
When most of a team is in (me location and there is one

member who is in another state, that person may come
up with good ideas and input but does not do any of the
legwork. They are also not juggling the things that come
up in the main office and the interruptions.
People are closer (emotionally) with team members they

see and work with closely in the same location. Team
members are warm toward others that we work with
emotely but not to the same extent
74
As discussed in Chapters II and m , much of the research on VTs has characterized

distance as a function o f two physical components; GD and TD. However, the research
results presented suggest that a unifying framework for the study o f virtual work, that
considers both GD as well as Socio-Emotional Distance, in a multi-dimensional
construct, would be highly valuable in explaining the behavior of virtual workers. It was
argued that the Virtual Distance construct would provide meaningful insights into the
behavior of VTs and individuals working virtually. The VDM and its relationship to
Trust, Clarity, OCB and PS provided a framework for helping to understand virtual
behavior and how it influences PS. The findings suggest that Virtual Distance can be
identified and captured as a unique and blended mix o f physical, social and psychological
factors that when taken together, significantly impact important performance outcomes.
V II BACKDROP
As globalization and technology continue to evolve, it is inevitable that virtual work will
increase. Organizational, cultural, as well as spatial and temporal differences in work
teams are likely to become the norm rather than the exception. Understanding how
Virtual Distance influences behavior is one of the keys to developing theories and
practices that can help select, organize and manage VTs effectively.
Virtual Distance is a multidimensional construct that incorporates a number o f distinct

factors that create a socio-emotional state or distance between two individuals, between
an individual and a team or between two teams. The notion o f distance described in this
75
work differs from other notions o f distance (e.g., psychological, cultural, social) in that it
includes spatial distance and temporal factors that make it difficult for individuals to
develop social ties, as co-located workers have done for centuries.
As discussed earlier, distance has played a major role in many theories in both social
science and physical science. Many examples of distance-based or distance-influenced
theories and concepts exist. Location theory is a good example o f how distance has been
used to predict the behavior o f consumers and other economic players. Physical distance
between nodes on a network can influence transmission times along network paths in
information technology networks. Small-world phenomena grow out o f network theory
and demonstrates how even vast numbers of nodes on multiple network paths can lead to
closer relations between individual nodes.
As work environments become more geographically dispersed, physical distance

becomes a more important feature. However, factors that can cause psychological or
emotional distance have to date been elusive and difficult to define or measure. In the
context o f VTs, such factors have been relatively unexplored. The results of this study
show that non-physical, or virtual, distance factors may be just as important to the study
o f VTs as the real distances between geographically dispersed work forces. The
construct of Virtual Distance provides a way to capture these socio-emotional factors
quantitatively and study their influence on behavioral and other work-related outcomes.
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VLII VIRTUAL DISTANCE FACTORS CONSIDERED
VI.II.1 CULTURAL DISTANCE (CD)

CD is a predictor variable for Virtual Distance. In this study, two facets o f CD were
measured: CV and CDiv. CV reflects cultural differences that may in part stem from
national characteristics but more importantly reflect organizational and work-related
differences in values.
Prior research has shown that cultural values are important to social identity, whereby
people who identify with one another tend to have the same or similar sets o f values.
(Larkey, 1996). However in social identity theory, the notion o f contact or physical
proximity is an inherent assumption that lies underneath the theory. Therefore, to
understand social identity theory in the context o f virtual or non-proximal group
members, more analysis needs to be done. The contact hypothesis suggests that with
physical proximity, like integrated schools, cultural value differences may be minimized
or better understood and tolerated (Allport, 19S4). So if there is little to no physical
proximity in VTs, then cultural value differences may become even more accentuated.
Figure 3 - Identity Orientation Processes in
1
u
*&
3
Reproduced with permission o f the copyright owner. Further reproduction prohibited without permission.
78
Brickson proposed that demographically diverse organizations, where team members are
physically distant and contain culturally diverse individuals, will produce varying identity
orientations depending on organizational, task, and reward structures (Brickson, 2000).
As can be seen in Figure 3, Bricksons model, the best global organizational outcomes
were argued to be those derived from corporate structures that include dense and
integrated relationship networks combined with dyad-based task and reward structures.
Identity orientation in high performing, culturally diverse work environments, were
posited to stem from relational identity orientation. Value orientation is aligned among
majority and minority team members within the context of social groups. In addition
Brickson posited that behaviors in high-performing global organizations include high
frequency and quality interactions with co-workers. Therefore the finding in this thesis,
that Virtual Distance is more prevalent when team members are culturally and
demographically distant, as well as distant on value dimensions, is consistent with these
assertions.
Volumes have been written on cultural differences (e.g. Chen, Chen, Meindl, 1998;
Corbitt, Peszynski, Hill, 2004; Davison, 1994; Shenkar, 2001). Much o f this work is
centered on demographic differentiators. This has helped many organizations with
issues such as leader development, multi-culturalism and expatriate strategies, just to
name a few. However, the concept of culture creating socio-emotional distance across
organizational networks, found in many 21st century global companies, has not been as
widely investigated. Virtual Distance may help to provide a theoretical platform on
which to study the concept of distance-based, cultural phenomenon.
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VI.II.2 SOCIAL DISTANCE (SD)

As discussed in Chapter V, SD was measured on two dimensions; formal social status
(SS) and contribution status (CS). SS related to differences in hierarchical, legitimate
positions, while CS related to differences in informal levels of status built on ones
contributions to the team. It was hypothesized that SD as a combination o f these factors
would be a predictor variable of Virtual Distance. However, upon preliminary analysis,
CS was seen as a significant predictor o f Virtual Distance and SS was not found to be
significant.
This finding suggests that social status in VTs is a function of informal rather than
formal, organizational hierarchies - the kind most often seen on a typical organizational
chart. This finding is consistent with Hodgsons research on project work and
bureaucratic control in a post-bureaucratic organization (Hodgson, 2004) summarized in
Table 11 below.
Table 10 - Characteristics of Bureaucratic and Post-Bureaucratic Organizations
Bureaucracy
Post-Bureaucracy
Consensus through Acquiescence to

Authority
Consensus through Institutionalized

Dialogue
Influence based on Formal Position

Internal Trust Immaterial
Influence through Persuasion/Personal

Qualities
High Need for Internal Trust
Emphasis on Rules and Regulations
Emphasis on Organizational Mission
Information monopolized at Top of

Hierarchy
Focus on Rules for Conduct
Strategic Information shared in Organization
Fixed (and Clear) Decision Making

Processes
Focus on Principles Guiding Action

Fluid/Flexible Decision Making Processes
80
Communal Spirit/Friendship Groupings

Hierarchical Appraisal
Network of Specialized Functional

Relationships
Open and Visible Peer Review Process
Definite and Impermeable Boundaries
Open and Permeable Boundaries
Objective Rules to ensure Equity of

Treatment
Expectation of Constancy
Broad Public Standards of Performance

Expectation of Change
Source: Heckscher (1994)
As shown in Table 11 above, according to Heckscher, in a post-bureaucracy organization,

like that of Miles and Snows networked organization (Miles and Snow, 1992), influence
is based less on formal position and more on persuasion and personal qualities. There is
a need for high internal trust developed through a network of specialized functional
relationships (Heckscher, 1994). Boundaries are more open and permeable, offering
team members the ability to establish status through less formal and contribution related
performance.
The finding that Virtual Distance can be predicted more on the basis o f CS versus SS
makes intuitive sense. Given the changing nature o f organizational structures toward a
post-bureaucratic structure, we should expect to see a stronger influence o f informal
hierarchies and status on Virtual Distance and performance outcomes. Partnerships and
other types of organizational relations are becoming ever more prevalent. These kinds of
relationships are not readily visible in a bureaucratic organization chart. A recent article
in BusinessWeek underscored this point. Despite the predominance of traditional, formal
structures, many o f todays organizations actually behave as networks, designed for the
digital age (Business Week, 2005). These networks are composed of individuals trying
81
to find their way through a maze o f institutional layers that often detract from achieving
goals and objectives.
Creating the conditions under which team members develop social status through
informal ties based on the extent to which they contribute to the team, may become
increasingly important in networked, technologically-mediated work environments. If
team members believe that their contributions to the team earn them a higher status, then
Virtual Distance becomes less of an issue. The finding that Virtual Distance is more
likely to be found where informal status is less o f a factor, suggests that future research
should incorporate measures of CS along with assessments of SS.
VI.II.3 RELATIONSHIP DISTANCE (RD)

RD was found to significantly and negatively relate to Virtual Distance. Those that either
knew each other prior to the start o f the project or knew some o f the same people as
others on the team, were less likely to perceive themselves to be distant from one another.
As Watts, the author o f Six Degrees (Watts, 2003), reminds us, the fictional Solarians of
Asimovs classic Foundation Trilogy (Asimov 1950-1992), lived in isolation from one
another but were connected by vast computer networks that enabled them to reach out to
very distant, and similarly isolated people. In contrast, Asimovs future Earth people,
described in his novel The Caves o f Steel (Asimov, 1954), were cave dwellers who
lived in groups and knew each other very well but were relatively unaware o f what lay
beyond their metal dwellings; virtually cut off from the rest o f the world. (Watts, 2003).
82
While this scenario makes for intriguing science fiction novels, such extremes are rarely
the case in the real world.
Sometimes, however, researchers fall prey to these kinds o f black and white distinctions
in study designs. RH is often silently assumed according to whether the team member is
geographically close or distant; i.e., the Steel Cave or Solarian design. As shown in
Table 1 in Chapter n, previous samples were in large part comprised of student groups
teams. RH was assumed to be strong when the teams were collocated. RH was
predominantly assumed to be weak when teams were dispersed (e.g. Chidambaram,
1996, Galegher & Kraut, 1994).
However, in todays organizational networks, team members are more likely to work
with each other repeatedly (if the relationship between respective organizations remains
in place), even when team members are geographically dispersed. This trend has
spawned a growing body o f research in the area of social networking (Watts, 2003;
Barbasi, 2003; Labianca, 2003; Ioannides, 2006 ). Another indicator that RH is a source
o f value to organizations using extensive virtual workforces, is the Rowing amount o f
venture capital finding its way to start-up companies that focus on social networking
software (Rivlin, 2005). However, as a group, VT studies have tended to bucket RH
into a dichotomous state based on geography.
In his study on relationships and inteigroup conflict, Labianca (Labianca, Brass, et.al.,
1998) found that when team members knew some of the same people in the social
network, the influence o f relationships was stronger on perceived conflict. Evidence that
83
third-party relationships can have a significant impact on team dynamics supports the
Virtual Distance hypothesis that both strong ties and weak ties influence Virtual Distance
and its impact on performance outcomes. As described earlier, Alge and WiethofF (2003)
found that having a RH with other team members neutralized negative influences such as
a lack o f trust, when team members used technology mediation as their primary form of
communication.
Virtual Distance then is influenced by the extent to which team members know each
other, or know some o f the same people regardless of where the team member is
physically located. Unlike the Solarians and cave people, organizational citizens exhibit
varying levels o f RD. RD is likely to continue to increase with expanding networked
organizations including onshore and offshore outsourcing. Attention to how people come
to know each other and the extent to which relationships can be fostered and nurtured
between dispersed groups o f virtual workers will help to reduce Virtual Distance.
VI.II.4 INTERDEPENDENCE DISTANCE (ID)

The less team members perceive themselves to be interdependent on one another the
more likely high levels o f Virtual Distance will be found. This finding is consistent with
the results of other research on the relationships between task interdependence and
commitment (Pearce and Gregerson, 1991; Bishop & Scott, 2000) as well as performance
(Saavedra, Early and Van Dyne, 1993).
84
Figure 4 *Thompsons Classification of Interdependence

Thompsons Classification of Interdependence and Management Implications
PeeM (taak)
Low
communication
Standardization,
rules,
procedures
Low
Medium
communication
Plans,
schedules,
feedback
Medium
High
communication
Mutual adjustment,
cross-departmental
meetings, teamwork
High
O ta *
flrq w rtil (
he)
CM
R*dpfcal(W*itsQ
O ta*
In Thompsons Classification o f Interdependence and Management Implications

(Thompson, 1967), interdependence is broken into three classifications; pooled,
sequential and reciprocal. Pooled is described as requiring relatively low levels of
communication between groups and the priority to locate units close together is relatively
low as well. Sequential interdependence, like on an assembly line, requires medium
levels o f communication and the priority to locate units close together is also medium. In
reciprocal interdependence, as characterized by a hospital, required levels of
communication are high and the priority for units to be located close together is also high.
This model suggests that physical proximity plays a major role in the levels of
interdependence that can be achieved. Thompsons model is summarized in Figure 4
above.
85
The findings of the present investigation suggest that in VTs, interdependence is an

important contributing factor to Virtual Distance. In our sample, and in many VTs that
are formed to enhance efficiencies and productivity in global corporations today, the
degrees of interdependence required are generally high. But when interdependence
becomes more difficult to achieve, Virtual Distance is more prevalent. If, as Thomson
(Thompson, 1967) suggests, one o f the ways to improve interdependence is to locate
teams closer together, and in the 21st century organization this is not only difficult but in
many cases impossible and undesirable, new ways to enhance interdependence must be
explored.
Interdependence must be achieved in other ways. According to Thompson (Thompson,

1967) and others, interdependence is also predicated on high levels o f communication.
One way to bridge the Virtual Distance gap due to a lack of interdependence may for
leaders to frequently communicate how team member goals and objectives are linked.
VI.II.5 FACE TO FACE (FtF) INTERACTION

Virtual Distance has a negative and significant relationship to FtF interaction. More FtF
interactions help to reduce Virtual Distance - especially if FtF meetings are held at the
beginning o f a project and at critical junctions such as preparing for key customer
meetings. The comparison between FtF interactions and virtual interactions is one o f the
most studied facets o f virtual work. As was discussed in Chapter H, much o f the research
considers the condition o f VTs and FtF teams to be dichotomous and static. Therefore,
we know a lot about these two ends o f the spectrum. However, as was also argued, many
VTs exist on a continuum o f virtualness that includes many different conditions including
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FtF interactions, phone, email, instant messaging, video conferencing, text-messaging

and more.
Media Richness Theory (MRT) is one way the research has looked at the issue of FtF
interactions (Burke & Chidambaram, 1998, Majchrzak, et.al. 2000, Ramesh and Dennis,
2002). MRT refers to the degree to which the media is rich with cues that help team
members interpret each others meanings and intentions. FtF communications provide
the richest set of cues including subtle body language and facial expressions. While
video conferencing helps team members with some o f these cues, technical problems and
video quality often interfere with expected benefits. Another consideration is that the
team members experience different environmental influences, such as temperature,
humidity, odors, etc. making it impossible for team members to share the experience in
its entirety. Despite these issues, the more sight-based cues there are, the more media-rich
the communication.
FtF interaction is one way to decrease Virtual Distance but may have limited application
depending upon the spatial distances involved in the team. The frequency o f FtF
interactions should continue to be an important variable in team research. A recent study
(Kirkman, Rosen, Tesluk, & Gibson, 2004) showed that FtF was a moderator for the
relationship of empowerment to success in virtual new product development teams.
VI.II.6 MULTI-TASKING (MT)

MT was significantly and positively related to Virtual Distance. The more deliverables
due, and the more team members were expected to meet multiple, simultaneous
87
deadlines, the higher the likelihood for higher levels o f Virtual Distance. There has been
very little work done on how multiple tasks and deadlines contribute to VT performance.
The data here suggest that MT has a direct relationship to Virtual Distance. By reducing
some o f the burden on team members, and helping them to focus on only the most
important deliverables, mangers can help to reduce Virtual Distance and increase PS.
Anecdotally, many stories are written of over-worked, stressed out workers in the digital
age. Our data help to support findings o f higher stress, feelings o f disconnectedness and
dis-associative behaviors which might be linked to Virtual Distance and an exacerbated
sense of separation.
VI.II.7 TEAM SIZE (TmS)

When teams are large there are many different behaviors that begin to develop like
group think and social loafing. Therefore, our findings, that TmS is related to
Virtual Distance, are aligned with much o f the research about large teams.
This finding is important in light o f other large-team issues. Since large team sizes may
promote an atmosphere conducive to social loafing (Liden, 2004) then large VTs that
experience high levels of Virtual Distance are likely to be prone to some o f these same
problems. And since some o f these teams do not meet FtF on a regular basis, such
behaviors may be more difficult to detect and modify.
This situation can be improved if large teams are sub-divided into smaller groups; much
like the techniques used in traditional teams. However importantly, in VTs, the
tendency for larger teams to be more virtually distant can be reduced if smaller teams are
created. This may add however to the management burden. With more teams to manage,
leaders must adjust their own schedules to meet the demands o f increased monitoring and
motivation challenges. This can sometimes be a difficult balancing act. However if
evidence o f Virtual Distance continues to surface due in part to large team size, leader
behavior should be adjusted to compensate for this finding.
VI.11.8 TECHNICAL SKILL (TS)

There was no significant relationship between TS and Virtual Distance. However, with
over half the sample consisting of a combination o f information systems, range restriction
may be an issue for software development and product development teams. With a larger
sample and a broader range of functional responsibilities this may change. However, it is
also possible that because todays professionals require such a high degree o f technologybased technical prowess, technical skill differences may in general be getting harder to
detect.
VI.III RELATIONSHIP BETWEEN VIRTUAL DISTANCE AND

TRUST ; OCB, CLARITY AN D PROJECT SUCCESS
VI.III.1 VIRTUAL DISTANCE AND TRUST

Our data suggested that Virtual Distance has a significant influence on Trust between
project team members. Trust is a widely studied construct with implications for many
important organizational outcomes (Mayer, Davis & Schoorman, 1995; Simons &
Peterson, 1995). Thus, evidence that Virtual Distance is related to Trust is significant for
the management o f VTs. According to a recent model by McKnight, Cummings, and
89
Chervany (1998), social mechanisms play an important role in sustaining and increasing
Trust. Interaction, they note, tends to increase Trust between people. Likewise, Mayer,
et al. (199S) suggest that increased interaction in traditional teams will increase Trust. In
VTs, the more distant a person is, the less frequent the interaction and Trust becomes
lower over time.
Previous studies have identified different types of Trust that may emerge on VTs.
Among the most cited is the notion of Swifi Trust, discussed by Jarvenpaa, et.al. (1998).
Swift Trust refers to the rapid development of a type o f cognitive trust that results from
the need to get a job done quickly using VTs. While this type o f Trust is helpful in
accomplishing relatively short-term goals, it may not be long-lasting or replicable for
other teams.
Other types o f trust formation in VTs have been more elusive. In part this is due to the
kinds o f samples used. The majority use graduate students assigned to a team for a
relatively short period of time. The team is assumed to disband after the study is
complete. While findings from such studies add to our understanding o f how Swift Trust
might develop within a small team assigned a specific task over a short term with
members that are not likely to work together again in an organizational context, the
results are hard to generalize to a corporate population of VTs. Through the present
study, significant relationships between Virtual Distance and Trust have emerged.
Therefore, it becomes clearer how and why Trust develops among VT members in
networked organizational structures.
90
Trust also plays a role in Social Identity Theory (SIT). Team members are more likely to
trust one another when they believe other members are more similar to them than they are
dissimilar. CV and SS similarities and the extort to which members have a RH will all
reduce Virtual Distance. Therefore it would follow that Trust would be higher in groups
that have these characteristics. Trust is also higher when there are more FtF meetings and
when team sizes are relatively small. Virtual Distance is a means by which the study of
VTs may simplify the complexity o f Trust Formation while keeping distinct variables
unique. This may lead to a way to advance the de-construction o f why team members do
or do not trust each other; beyond the explanation o f GD. Virtual Distance also helps to
shed light on what has been something of a black-box when it comes to Trust and VTs.
Differing sets o f CV, CS, and lack o f RHs might be overlooked when Swift Trust is
necessary or when team members are not likely to work together again. Virtual Distance
helps to set the stage for future research about Trust related issues within corporate
organizational structures. Some of these research areas might include differing levels of
cognitive versus affective trust in VTs, trust and leadership, trust and innovation and
many others. By illuminating the granularity o f behaviors through the Virtual Distance
construct, a more comprehensive set o f research designs may be attainable.
VI.III.2 VIRTUAL DISTANCE AND ORGANIZATIONAL CITIZENSHIP

BEHAVIOR (OCB)
One of the outcomes o f lower trust is a reduction in OCB. OCB can be viewed as
voluntary behavior that is part of a social exchange process. Trust characterizes
confidence and beliefs about other team members likelihood o f reciprocating OCB
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(Soon & Yuh, 2003). Thus, when Trust is low team members are less likely to engage in
OCB and less likely to define their role more broadly to include OCB.
This relationship remains strong when VTs are considered as well. OCB has not been a
focus of many virtual studies to date. And yet previous research shows that going above
and beyond the call of duty and other OCB may ultimately lead to long term success.
The model posited is supported by the results leading to a more robust examination of
VTs and OCB.
VI.III. VIRTUAL DISTANCE AND CLARITY

Virtual Distance also has implications for shared understanding of what is expected both
in the vision for the project and the goals that are to be achieved. Although empirical
studies are lacking, Keszbom (1999) notes that a common vision or sense o f purpose is
more difficult to achieve with VTs. The results indicate that it may be more important to
understand the Virtual Distance among team members to know whether a lack o f
common vision is likely to be a problem.
Virtual distance was significantly and negatively related to Clarity. Clarity was
significantly and positively related to PS as well as OCB. Some of the literature points to
the need to acknowledge that Clarity can become diffused in VTs. However, the
underlying reasons why have yet to be uncovered. The Virtual Distance construct
suggests possibilities for future research.
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VI.III.4 VIRTUAL DISTANCE AND PROJECT SUCCESS (PS)

The research question posed at the beginning of this dissertation was How does virtual
work impact project success? While research on VTs continues to develop, there is
currently little evidence of what influences PS and VTs. The VDM and the results from
this research outline a possible roadmap for how some o f the dynamics o f VTs ultimately
impact both financial and non-financial success.
The PS variable was measured as a composite of on-time, on-budget and customer

satisfaction performance. Through SEM, it was shown that Virtual Distance has an
indirect relationship to success through Trust and OCB as well as Clarity. While a
second model was tested for a direct relationship between Virtual Distance and PS, the
Goodness o f Fit measures were not as significant in the second model. This finding is
very important and could point to why the results of researchers to date, while
qualitatively rich, have not yielded many statistically significant findings.
Virtual Distance is a multi-dimensional construct that was developed by combining

theoretical frames, case studies, and survey data. This gives the construct a quality of
grounded theory that may help to further explain, and possibly predict, the complex
relationships inherent in virtual work. Virtual Distance richly describes a multitude of
dynamics that occur simultaneously among networked workers. By finding support that
the distance variables influence perceptions of distance, and computing an objective
measure of Virtual Distance that significantly influences performance outcomes,
triangulation can be achieved bolstering construct validity. Therefore, this study adds
significant value to the body o f existing research about how virtual work impacts success.
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VLIV. CONTRIBUTION TO RESEARCH

Globalization, the ever-increasing use of the Internet, the rise of networked
organizational structures and the changing ways in which team members are distanced
from one another all contribute to a growing curiosity about, and on-going pursuit o f
virtual work research. The academic studies have led to many findings; some examples
o f which were summarized by Powel, et.al (2005) and detailed in Chapter II of this thesis.
While the prior research has focused on various issues, such as trust, relationship
building, task-technology fit, networks, information exchange, member status and a host
o f other factors, there has yet to emerge a unified theory for the study o f virtual work.
The literature contributes to our understanding of VTs in many important ways including
the illumination of a plethora of issues that develop in virtual work teams. The growing
body of research also continuously adds to the knowledge base.
However as was discussed in Chapter II, the research also suffers from three primary
issues. First, management and technology publications do not regularly reference one
another, thereby creating gaps in findings and research designs. Second, virtual versus
traditional teams are seen mainly as dichotomous states. Yet virtual workforces often
work virtually as well as FtF. And third, while geographic and temporal distance are
often at the heart o f the research on these matters, other distance factors, such as socioemotional distance, may also be impacting PS. The results from this study suggest that
the VDM may overcome much of this shortfall.
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The results show that Virtual Distance is a function o f a combination of technological,

managerial and behavioral issues. Factors from each of these disciplines were selected to
develop the construct, Virtual Distance. Technical factors were examined in two ways.
First, varying communication methods that included technology-based tools such as
email and instant messaging, collaboration software, proprietary software packages as
well as phone interactions and FtF meetings were examined. The findings were captured
in the variable termed FtF. Second, the variable TS which described the technical skills,
knowledge and abilities of participants, was also studied. TS also included technical
support as well. Managerial and behavioral factors included cultural values and
demographic differences, social status, both formal and informal, interdependence of
team members, relationship history, team size, and the degree to which team members
had to multi-task to succeed in their work.
It was found that FtF interactions had a major impact on perceived distance. When
technology-mediated communications were mixed with regular FtF meetings and FtF
meetings were held at the start o f projects or at critical junctures, perceived distance was
significantly lower. However, when technology-based communications dominated, with
little or no FtF interaction, perceived distance among team members was significantly
higher.
TS on the other hand, did not contribute significantly to perceived distance. This is an
important finding because earlier research has suggested that technical research
considered without the benefit o f a behavioral lens provides little evidence of significant
results (Gopal, 2000). This research supports this conjecture.
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On the behavioral factors, all but one had significant relationships to perceived distance.
CV, CDiv, CS, ID, RD were all significantly and negatively related to perceived distance.
Only SS differences were not significant - running counter to our hypothesis on this
measure.
Therefore the evidence suggests that both technological factors, such as technology-based
communications, as well as behavioral factors, contribute to a sense of perceived distance
which is what ultimately impacts success. FtF versus technology-mediated interactions
help to close the gap on perceived distance. Technology-based communication alone
does not.
Virtual Distance considers technology and behavioral issues together - within
the same construct. Therefore, this contributes to the literature through the integration of
the two streams of research.
A second issue in the literature relates to the dichotomization o f virtualness. Participants

are usually FtF or virtual; not both. However, the Virtual Distance model takes a broader
approach. The findings suggest that measuring virtualness on a continuous versus a
discrete scale, gives a more realistic picture of how VTs work. Participants were asked to
think of a project that had lasted a minimum o f 3 months, capturing both virtual and FtF
work over the course of the project. 77% of the respondents said that they had at least
some level o f FtF interactions along with virtual interactions over the duration o f the
project. In addition, the mean Project Length was just over 11 months with
approximately 1IS projects represented. All respondents were professionals at major
corporations headquartered in the Northeast, U.S.A. This suggests that virtualness varies
over the course o f a project life-cycle - at times team members are virtual and at times
they are FtF or using other communication technologies. The results therefore reflect a
set of findings which may be more readily generalized, extending the prior research in
this area.
A third issue that arose during the review of relevant research was that o f a restricted
definition o f distance - restricted to the physical sense o f the word. As discussed in
detail, much of the literature defines virtual work in part by the extent to which team
members are geographically distant. However, it was argued that physical distance alone
may not be enough to explain significant differences in performance outcomes o f VTs.
The results support this argument and suggest that distance-related perceptions, resulting
from socio-emotional factors, can create or add to a sense of perceived distance.
Virtual Distance was found in both geographically disperse groups as well as groups that
characterized themselves as co-located. This is a major finding and one that underscores
the value of considering perceived distance beyond physical boundaries. There is strong
support that the behavior of 21* century teams is impacted by perceived distance factors
as well as physical distance factors, no matter where the team members actually reside.
This adds significantly to our understanding of present-day teams in general.
The major assumption of VT research is that geographic separation is the most important
differentiating factor when comparing VTs to co-located teams. The notion o f Virtual
Distance challenges that assumption. Should further research continue to bear out these
findings then researchers and practitioners alike should consider re-assessing the common
97
definitions of distance. While some use the metaphor, the world is flat (Friedman,
2005), perhaps it may be more accurate to use the old saying, so near and yet so far.
Technology-mediated work has made it possible to reach out to many different parts of
the globe. But a side effect o f this relatively new capability may be that technology
mediation is also causing us to perceive ourselves to be further away from each other no matter where we are physically located. Therefore the contribution o f this work not
only adds to the understanding o f VTs, but also offers a new way to consider distance and
its relationship to behavior.
VIV. CONTRIBUTION TO THEORY

Several theoretical contributions arise from this research. Although Trust has been
extensively explored the notion of distance as a predictor o f Trust has not. Likewise
there is not much research on distance as an antecedent of shared vision and clarity. A
better understanding of how Virtual Distance affects the formation o f shared vision and
goal commitment could be an additional contribution.
In prior VT research, a variety o f theories have been used. These are summarized in
Table 1 o f Chapter DL For ease of discussion, they are summarized again here as
including:
Adapted Grounded Theory
Communications Theories
Contingency Theory
Learning Theories
Media Richness Theory
98
Structuration Theory
Network and Organization Form Theories
Social Presence
The theories listed help to support the discrete arguments made in each o f the works that
employ them. However as was pointed out earlier, using the example o f Thompsons
Classification of Interdependence (Thompson, 1967), some o f the basic assumptions
beneath some o f the most time-tested management theories, may have changed with the
pervasive use o f dispersed work teams. Therefore it is recommended that future research
be designed in part to challenge those assumptions in VT investigations.
In Thompsons classification, there is an underlying assumption that it is possible to

locate units closer together for the purpose o f enhancing interdependence where needed.
However, as was discussed, this is often not a desired state in todays organizations.
Global corporations have turned to virtual work and far-flung teams for a variety of
reasons including cost cutting, gaining access to specialized resources, etc. The trend is
to do more virtual work. Therefore Thompsons classification stratum may need to be
updated in lieu of these developments.
As discussed earlier, SIT rests in part on the assumption o f contact. This assumption is
based on the seminal work o f Allport and racial bias (Allport, 1954). The contact
hypothesis was used to help make the case for racial integration - particularly schools.
Allport argued that without actual (physical) contact or proximity, it would be difficult at
best to overcome racial biases. Contact was necessary to sympathize with different races
99
and socio-economic classes and, through this sympathy, people could begin to overcome
their racial prejudice. However, following from the discussion above, in todays virtual
workspaces, the assumption o f contact, which lies beneath SIT and others, may no longer
be applicable in some cases. Therefore a review o f theories that are in part based on
physical proximity and closeness, whether explicitly or implicitly stated, may be a
promising area for new research.
It follows then that this thesis also contributes a new theory for the study o f virtual work;
termed Virtual Distance Theory (VDT). VDT might in the future provide a springboard
to a comprehensive contingency theory based on the construct o f Virtual Distance. The
theory as it is presented here posits that, as Virtual Distance increases, performance
outcomes degrade due to deterioration o f Clarity, Trust and OCB. VDT should be
extended to test differing sets of conditions including external environmental conditions
as well as organizational design features. In addition, other mediating and moderating
variables should be tested to understand what other factors may be involved with success
and other leading performance indicators.
100
Many of the implications of Virtual Distance have yet to be studied. Some areas that are
potentially interesting and important include affective variables, selecting and organizing
VTs and managing and leading VTs. For example, how does distance influence the
emotional and affective side o f work? Do distant employees have more or less
satisfaction, are they more or less committed? Recent research has confirmed the
increased difficulty o f meeting socio-emotional needs o f VT members (Chidambaram,
1996; Lurey & Raisinghani, 2001; Maznevski & Chudoba, 2001). In a recent paper, Kock
(2004) suggests that human evolution has designed both our brains and bodies for FtF
communication. It may be that alternatives to the social interactions of the workplace
will have to be found for many virtual workers to meet some o f the social and emotional
needs required for job and life satisfaction.
Notions of Virtual Distance may also be applied to selecting and oiganizing VTs. For
example, a critical global project may require understanding and perhaps minimizing the
distances between team members by selecting individuals with closely aligned workrelated values and organizing the tasks to provide clear opportunities for interdependence
and frequent communication. Selecting team members with a history o f working
together may also be a way to decrease the Virtual Distance within a team. Lynn &
Reilly (2002) found that very high performing teams generally knew one another and had
worked on similar projects before. In addition to selecting members with past common
experiences, organizations can also plan for the future by providing opportunities for
dispersed co-workers to build relationships.
101
Practioners may want to start to address CD from a values point o f view as well as
demographics-based education. Training on cultural demographics helps organizational
members who visit different countries on a regular basis. It is also useful for leaders who
manage multi-cultural team members. However, this type of training does not
necessarily improve alignment between cultural value divides - one o f the most salient
factors contributing to CD and Virtual Distance. The findings suggest that if cultural
values were the focus o f more training, team selection processes and mentoring
programs, then perhaps higher levels o f trust and clarity may emerge, potentially
resulting in higher levels o f success.
Practitioners also should develop better methods for creating an environment where
informal status can be elevated. These practices might include higher levels of
recognition for contribution o f team members through more frequent and targeted leader
messages to all team members. VT reward and recognition programs can also be
developed to help bolster team member perceptions of informal status based on rewards
for contributions.
Practitioners can help to minimize Virtual Distance by illuminating social networks

within the organizational web. Once visible, they can focus on seeding project teams
with a few members that may have worked together in the past or who know some o f the
same people. This will help to reduce Virtual Distance and increase Trust.
102
Another area o f application o f Virtual Distance notions is in team leadership.

Understanding how distant team members are from one another and how they differ on
key facets o f Virtual Distance can help project managers to better lead and manage. As
virtual work proliferates effective leadership o f projects in virtual space will become an
essential competitive weapon.
103
The results presented provide evidence that the multidimensional VDI has an influence
on several important intermediate and outcome variables in project teams. In addition,
the results offer some preliminary validation for the notion of Virtual Distance as a
meaningful construct. The study has 3 major limitations.
First, some of the data are limited to single respondents, which may have produced some
mono-method bias. Factor analysis o f the VDM variables indicated that 18.7 % o f the
variance was accounted for by the first factor. A second factor analysis of items
measuring the exogenous variables in our model showed 29.2% o f the variance
accounted for by the first factor. Using the Harman test (e.g., Podsakoff & Organ, 1986),
these results suggest that single-source bias may not be a serious problem. For projects
which there were multiple responses intraclass correlations for key variables were
examined. Intraclass correlations ranged from ranged from .S8 to .77 with a median of
.67, suggesting a reasonable level o f agreement between independent respondents.
Nevertheless, more multiple response data would allow better understanding o f how
Virtual Distance operates within and across teams to influence Trust, Clarity, OCB and
other outcome variables.
A second limitation has to do with the nature o f the sample. While the sample improves
upon those in previous studies, most of the data come from financial institutions, for
which the projects tend to be software or service development. This potentially limits
generalizations.
104
A third limitation was the relatively small sample size. Opinions as to minimal sample
size vary. For example, Stevens (1996) argues that sample sizes should be at least IS
times the number of variables. Bentler and Chou (1987) recommend at least S times the
number of parameter estimates (including error terms). Loehlin (1992) recommends at
least 100 and preferably 200 cases. This study, while certainly on the low end of these
statistical heuristics, at least meets the minimum requirements suggested by these
researchers. In the future these limitations can be addressed by collecting larger numbers
o f multiple responses from a variety o f different kinds o f organizations and projects.
105
The study of distance and its impact on behaviors has been, and continues to be, an
important area of research. VTs present a particularly complex and challenging set of
issues for the modern-day social scientist. Spatial and temporal distance, the defining
characteristics o f early VT studies, is easy to understand and measure. However it
appears from this study that these simple measures are not enough to understand VT
behavior. Virtual Distance - the perceived distance between two or more individuals,
groups or organizations, brought on by the pervasive use o f technology-mediated
communications - describes an important psychological distance factor.
This work provides evidence that what has previously been an amorphous set o f complex
issues, may be measurable. As our world changes and we try and find ways to enhance
our work environments, to improve performance outcomes, and to enhance individual
satisfaction, major adjustments in the way we have traditionally looked at work need to
be made. A search of Amazon.com provides over 162 matches for books about Virtual
Teams. However the dynamics between organizations, human behaviors and multiples of
networks need to be further studied in order to uncover the secrets hidden within.
VDT is a step in that direction. Virtual Distance helps both practitioner and academic
alike cast their thoughts about separation in a completely different light - a paradigm
shift, if you will. This shift is needed so that new and different perspectives can be
explored. While history is a good guide, new frameworks are also needed. It is expected
that VDT will prove to be a useful one.
106
A flowchart of how the literature review was conducted is illustrated in Figure 5 below.
107
Figure 5 - Literature Review Overview
Literature Search Flowchart

Pr i m a r y 8 e a r c h
Management
0 rg a n i za tio n a I
A R e v e a l e d P r e f e r e n c e
S t u d y of M a n a g e m e n t
J ou rna l a Direct Influences'
( T a h a i a n d M eyer 1999)
Har var d Bu si n*** Review

Personnel P sychology
A c a d e m y of M a n a g e m e n t R e v i e w
A cad em y of M sn a g * m a n ! Journal
J o u r n a l of In te rn ati onal B u s i n e s s S t u d i e s
A dm in is trativ e S o l e n e e Q u a rt er ly
H um an R elation s
American E co no m ic R eview
A m erican Journal o f S o c io lo g y
Industrial a n d L a b o r R e l a t i o n s R e v i e w
Strategic M a n a g e m e n t Journal
Journal of M a n a g e m e n t S tu d io s
J ournal of Applied P s y c h o l o g y
Journal of P erso n a lity a n d S o c ia l
Psychology
Organisational B e h a v io r and H u m an
D ecision P r o c e s s e s
P s y c h o l o g i c a l Bu lletin
American S o ciological R eview
R e s e a r c h in O r g a n i z a t i o n a l B a h a v i o r
P sychological R eview
A cad em y o f M a n s g e m e n t Executive
M is Q u a rte rly
I n f o r m a t io n
System s
' C i t a t i o n C l a s s i c s from
t h e I n f o r ma t i o n S y s t e m s
Li t e r at u r e* ( ( W a l s t r o m a n d
Leonard 2000)
C o m m u n ic ation s o f th e ACM
D ecision S c ie n c e s
D ecision Support S y ste m s
Information a n d M a n a g e m e n t
Information S y s t e m s R e s e a r c h
Jo u r n a l o l M a n a g e m e n t In fo rm at io n S y s t e m
C rossover
Aggregated
by journal
S e a r c h Term a p e r
Journal:
Vi r t ual
C o m p u t e r Mediated
C o m m unfcation
(CMC)
Com puter Su pp or t ed
Col laborative W o r k
(CSCW)
Human Computer
I n t e r a c t i o n ( HCI )
Aggregated
Secon dary Search
by primary
s e a r c h t erm
Database: Endnotes
D a t a b a s e s c r e a t e d from
p r i ma r y s e a r c h by
journal
M a n a g e m e n t S c ie n c e - Both
Bo t h S t u d i e s
D a t a b a s e : ABI Inform
Gl o b a l
O rg an iz ati on S c i e nc e - BOTH
S e a r c h T e r m s in A b s t r a c t
Vi rt ual
Co m p u t e r Me d i a t e d
C o m m u n i c a t i o n ( C MC )
Com puter Su ppor te d
Collaborat i ve W o r k
(CSCW)
Human Computer
I nt e r a c t i o n ( HCI )
Aggregated
by
topic
108
The steps involved in the literature search are described below.
Step 1
Journal Selection
The first step in the literature research on VTs was to choose journals in which research
on organizational virtual environments is prevalent. A search o f the ABI INFORM
Global database was conducted. The majority of articles on the subject were found in
management and information systems journals.
The process used was similar to the one
employed by Powell and Moore to classify research in their study o f end user computing
(Powell and Moore; Powell and Moore 2002). To identify target management journals,
the list generated by Tahai and Meyer in their article A Revealed Preference Study of
Management Journals Direct Influences (Tahai and Meyer, 1999) was used. The
eighteen of the top twenty journals, which were cited by ABI, were chosen as the sample.
Two additional journals, The Academy o f Management Executive and Organization
Science, ranked 33 and 28 respectively, were included in the management journal search
because important works by Townsend and Jarvenpaa, whose definitions o f virtual
environments are often cited (Jarvenpaa and Leidner 1998; Townsend, DeMarie et al.
1998) were published in these journals. The information systems journals chosen were
those cited in Walstroms Citation Classics from the Information Systems Literature
(Walstrom and Leonard 2000). Two o f the sample journals identified were included in
both the Tahai and M eyer, 1999 as well as the Walstrom and Leonard, 2000; namely
Organization Science and Management Science. For this reason, a third category called
109
Cross-Over journals was created because their content generally tends to be classified
as both information systems as well as management.
Step 2
Term Identification
After identifying the journals in which to search, it was necessary to determine on what
terms to search on. The term virtual yielded the most articles, but many o f them were
unrelated to virtual work; the primary search having captured all uses of the word
virtual in the article text. Other terms were also found to produce virtual work-related
works. Several hundred abstracts, journal articles and other materials were reviewed and
four terms were selected for this study as representative o f many virtual works; Virtual,
Computer Mediated Communication (CMC), Computer Supported Collaborative Work
(CSCW) and Human-Computer Interaction (HCI).
Step 3
Sub-searches
A primary search on the ABI Inform Global Database and a secondary search using the
EndNotes software product were performed. The primary search was done to determine
how many articles were found for each term in the targeted management and information
systems journals. It was found that even though terms were used in the text o f an article,
the focus o f the paper may not have been related directly to a proposed virtual
phenomenon, or if it was, the author did not use die same terminology to summarize the
110
article in the abstract. Therefore a secondary search was conducted on the citations
found, to determine a Return Rate by Term within all journals searched. This gave the
number o f articles that referenced a virtual work term in the text o f the article as well as
in the abstract, keyword or citation. A summary o f these results is shown in Table 12
below.
Ill
Table 11 - Literature Review Analy

Journal
Primary
Search
Virtual
Secondary
Search
Virtual
MIS
58
Q uarterly
Communication
> of the ACM
630
Decision
Sciences
Decision
Support
Systems
Information
and
Management
Information
Systems
Research
Journal of
Management
Information
Systems
Academy of
Management
Executive
Personnel
Psychology
Academy of
Management
Review
Academy of
Management
Journal
Journal of
International
Business
Studies
Administrative
Science
Quarterly
Return
Rate for
Virtual
Primary Search
Computer
Mediated
Communication
(CMC)
Secondary
Search
Computer
Mediated
Communication
(CMC)
^
b I
H
B
H
7%
32
156
25%
37
27
15%
15
15
Return Rate for

Computer
Mediated
Communication
(CMC)
Primary
Search
Computer
Supported
Collaborative
Work
(CSCW)
H
H
B
I
Secondary
Search for
Computer
Supported
Collaborative
Work
(C S C W ^^^
Return Rate for

Computer
Supported
Collaborative
Work
(CSCW)
0%
30
0%
Primary
Search for
Human
Computer
Interaction
(HCI)
Secondary
Search for
"Human
Computer
Interaction
(HCI)
Retun
forH
Comp
Interai
(HCI)
B^lBBBl bh
1
0%
21
11%
79
8%
251
39
16%
13
23%
0%
21
0%
100%
75%
100%
0%
100%
50%
50%
0%
18
11%
14
7%
0%
11
0%
81
11%
46
7%
23
0%
44
5%
72
12
17%
67
3%
42
7%
38
5%
33
25
bh
m
iBii0^
0%
2
0%
0%
11
0%
4%
BBBl IBI
0%
0%
0%
0%
50%
0%
9%
0%
0%
0%
0%
0%
0%
0%
0%
112
Journal
Human
Relations
American
Economic
Review
American
Journal of
Sociology
Industrial and
Labor Relations
Review
Strategic
Management
Journal
Journal of
Management
Studies
Journal of
Applied
Psychology
Journal of
Personality and
Social
Psychology
Organizational
Behavior and
Human
Decision
Processes
Psychological
Bulletin
American
Sociological
Review
Research In
Organizationsi
Behavior
Psychological
Review
Primary
Search
Virtual
Primary Search
Computer
Mediated
Communication
(CMC)
Secondary
Search
Computer
Mediated
Communication
(CMC)
Return Rate for

Computer
Mediated
Communication
23
13%
17%
Primary
Search
Computer
Supported
Collaborative
Work
(CSCW)
1
21
19%
0%
0%
0%
13
15%
0%
0%
0%
12
0%
33%
0%
0%
0%
0%
0%
0%
100%
0%
0%
0%
0%
0%
0%
0%
100%
0%
0%
0%
0%
10
10%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Secondary
Search
Virtual
Return
Rate for
Virtual
(CMC)
Secondary
Search for
Computer
Supported
Collaborative
Woik
(CSCW)
0
Return Rate for

Computer
Supported
Collaborative
Woik
(CSCW)
Primary
Search for
Human
Computer
Interaction
(HCI)
Secondary
Search for
Human
Computer
Interaction
(HCI)
Retun
forH
Comp
Interai
(HCI)
0%
0%
CR OS S OV ER J O U RN AL S
Organization
Science
Management
Science
21
42%
86%
0%
0%
40
10
25%
33%
0%
0%
113
Step 4
Database Creation
After the primary search was completed, all citations, abstracts and keywords from the
articles identified,were downloaded into EndNotes databases. In the case o f The
Communications o f the ACM articles, only those with virtual in both the article content
and abstract were downloaded into EndNotes. Where no articles were found using the
search term in the primary search, no database was created. In total, 71 EndNotes
databases by journal and search term were created. Table 13 shows the searchable fields
in the EndNotes database and Table 14 shows a summary of databases created.
Table 12 - Searchable Fields in Endnotes
Searchable Fields in EndNotes
114
Author
Year
Title
Journal
Volume
Issue
Pages
Date
Type of Article
Short Title
Alternate Journal
ISSN
Original Publication
Reprint Edition
Reviewed Item
Accession Number
Call Number
Label
Keywords
Abstract
Notes
URL
Author Address
Image
Caption
Table 13 - Table of Literature Databases Created

D atabases C reated be Seeoiular\ Search
Academy of Management Executive CMC
Information and Management CMC
Academy of Management Executive Virtual
Information and Management CSCW
Academy of Management Executive HCI
Information and Management HCI
Academy of Management Journal CMC
Information and Management Virtual
Academy of Management Journal CSCW
Information Systems Research CMC
Academy of Management Journal HCI
Information Systems Research CSCW
Academy of Management Journal Virtual
Information Systems Research HCI
Academy of Management Review CMC
Information Systems Research Virtual
Academy of Management Review CSCW
Journal of Applied Psychology CMC
Academy of Management Review HCI
Journal of Applied Psychology Virtual
Academy of Management Review Virtual
Journal of International Business Studies CMC
Administrative Science Quarterly HCI
Journal of International Business Studies Virtual
Administrative Science Quarterly Virtual
Journal of Management Information Systems CMC
American Economic Review HCI
Journal of Management Information Systems CSCW
American Economic Review Virtual
Journal of Management Information Systems HCI
American Journal of Sociology CMC
Journal of Management Information Systems Virtual
American Journal of Sociology HCI
Journal of Management Studies HCI
American Journal of Sociology Virtual
Journal of Personality and Social Psychology CMC
American Sociological Review CMC
Journal of Personality and Social Psychology Virtual
I);ilal\iscs ( icaicd b \ S eco n d ,ir\ Search
American Sociological Review CSCW
Management Science CMC
Communications of the ACM CMC
Management Science CSCW
Communications of the ACM CSCW
Management Science Virtual
Communications of the ACM HCI
MIS Quarterly CMC
Communications of the ACM Virtual
MIS Quarterly CSCW
Decision Sciences HCI
MIS Quarterly HCI
Decision Sciences Virtual
MIS Quarterly Virtual
Decision Support Systems CMC
Organization Science CMC
Decision Support Systems CSCW
Organization Science CSCW
Decision Support Systems HCI
Organization Science HCI
Decision Support Systems Virtual
Organization Science Virtual
Human Relations CMC
Organization Behavior and Human Decision Processes CMC
Human Relations CSCW
Personnel Psychology CMC
Human Relations HCI
Personnel Psychology HCI
Human Relations Virtual
Personnel Psychology Virtual
Industrial Labor Relations Review CMC
Strategic Management Journal Virtual
Industrial Labor Relations Review Virtual
117
Step 5
Multiple Term Search

The next level o f the analysis was performed to determine how multiple manifestations of
virtual environments were incorporated into the papers. This provided a useful indication
o f whether a particular term was more closely tied to multiple concepts than others within
the virtual realm. To perform this task, another set o f databases was created, this time
grouped by one primary search term and category; category being information systems,
management and cross-over journals. To determine the extent o f conceptual intersects
within term and category databases, a search macro was built to include all 3 remaining
terms. For example, if the aggregated database was for management journal articles on
CMC a macro was built that searched that database for any of the remaining terms used;
virtual, CSCW, and HCI. This process was performed on all entries in each database.
The results of this analysis are shown in Table 15 below.
Table 14 - Terminology Analysis

(1)
Aggregate
Database Name
(2)
Total number
of articles in
database
Management
CMC
Management
CSCW
45
5
(3)
Total number of
articles found
with primary
search term in
one of
EndNotes
searchable
fields
(Return Rate
Baseline)
(4)
Return
Rate on
Primary
Search
Term on
Term
Database
(5)
(6)
Total number
Total number of
of articles
articles found
found with
with secondarily
secondarily
remaining
remaining
search terms on
search terms on Column 2
Column 3
13%
20%
HHHH1 m n m n
2005 Karen Sobel Lojcski
118
(1)
Aggregate
Database Name
(2)
Total number
of articles in
database
Management
HCI
Management
Virtual
(4)
Return
Rate on
Primary
Search
Term on
Term
Database
(5)
(6)
Total number
Total number of
of articles
articles found
with secondarily
found with
secondarily
remaining
remaining
search terms on
search terms on Column 2
Column 3
22
(3)
Total number of
articles found
with primary
search term in
one of
EndNotes
searchable
fields
(Return Rate
Baseline)
0
0%
312
30
10%
HHHM
IS CMC
IS CSCW
147
128
IS HCI
IS Virtnal
HU m
18
9
12%
7%
2
1
14
8
158
6%
364
202
55%
Cross-over
13
CMC
Cross-over
2
CSCW
j
Cross-over HCI 1
62%
0%
0%
Cross-over
Virtual
19
31%
61
2005 Karen Sobel Lojeski
119
Step 6
Duplication Search
The next level o f analysis was done to find out the degree to which there was terminology
overlap in management, information systems and cross-over journals. First, an
aggregation of the database information by category, management, information systems
and cross-over journals was performed and then the number o f duplicates in each
aggregation was determined. This yielded a measure o f terminology overlap in
management versus information systems versus cross-over journals. The results o f this
step are shown in Table 16.
02X 5 Karen Sobe! Lojeski
120
Table 15- Duplication Analysis

Aggregate Database
Total Number of Citations Number of Duplicates

without Duplicates
Percent of
Duplicates
Search on
all 4 terms
Management
368
13
4%
37
Total
Return
Rate
10%
Information Systems
637
160
25%
224
35%
Cross-Over
74
4%
23
31%
Step 7
Final Aggregation for Future Research

Lastly, all the aggregate databases were combined into one large database. This provides
a good foundation on which to build a rich bibliography of virtual environment literature
to date.
02005 Karen Sobel Lojetki
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Background
The extensive use of VTs and outsourced resources has become a ubiquitous norm in
many corporations around the globe. However, little is known about how this increasing
trend, being implemented on such a large scale, impacts critical performance drivers in
the long term. At present, companies know that they are saving money. In fact, study
after study shows that this has been the number one reason for choosing virtual
environments that house a distanced workforce. Scaling back full-time in-house
resources results in bottom-line improvement in the short-term.
However, some executives are beginning to ask themselves how they can sustain these
advantages over the long-term. Astute and experienced professionals, that take
advantage of geographically displaced workers, connected by high-speed
telecommunications and computers, also know that there are inherent problems
associated with working virtually. Issues such as cultural differences, lack of a working
history amongst VT members, conflicting goals, and a host of other potential
impediments, could lead to dysfunctional behavior and poor performance. Left
unattended and aggregated across the organization, these behaviors could also have a
negative impact on not only on-going financial performance, but on future strategic
performance as well.
122
Managerial effectiveness, improved innovation, high employee commitment levels, and a

host of other critical factors associated with long-term success, are potentially at risk in
virtual or outsourcing relationships. Despite extensive academic literature on the subject,
there is no clear framework for practitioners freed with planning and managing virtual
environments. Such a framework, based on data and insights from employees and leaders
working in and managing virtual environments would allow the more effective
deployment o f outsourcing and other virtual solutions. Corporate leaders would also be
better able to assess the risks and devise strategies to mitigate them.
A Breakthrough Approach
Researchers at Stevens Institute of Technology are creating such a framework. They

have developed an innovative and unique approach to looking at some o f the critical
issues that come up in virtual and outsourced environments. Their working model is
called the Virtual Distance Model. Karen Sobel Lojeski and her colleagues Richard
Reilly and Peter Dominick are working with senior level executives at several major
corporations. After this phase o f the research is complete, the participants will have
hopefully gained key insights into what makes virtual environments successful and a
better understanding o f their downside exposure in these environments. With this
additional information they can develop scalable, repeatable and forward looking
approaches to enhance their long term financial and strategic success using virtual and
outsourced resources.
@2005 Karen Sobel Lojeski
123
What is Virtual Distance f
Virtual Distance is a multidimensional perceptual concept developed to help researchers

and business professionals alike analyze some o f the key elements which promote a sense
o f distance between players in a virtual work environment. Why will Virtual Distance
help to uncover some o f the potential downside risks o f using virtual and outsourced
resources? Research has shown that the perceived distance between two people has
effects on communication, persuasion, innovation and ethical behavior. Virtual
environments create teams and work groups that are, by definition, distant from one
another not only in the physical sense but in other ways as well. Employees on the same
VT may differ in culture, nationality, time zone, values, organizations and other factors.
In the virtual realm it is not just actual or real physical separation that plays a role in these
activities. It is much more complex. Our perceptions of distance may have important
consequences to the organization. Time differences as well as relational distance (the
company one works for versus others), may also contribute to the way we behave and
perform.
But consideration o f these three distance factors, spatial, temporal, and relational, does
not go far enough. Other elements may add to a sense o f separateness in virtual space.
After a year and a half o f searching the literature, conducting case study research and
talking with many senior managers, executives and project team members, Sobel-Lojeski,
124
Reilly and Dominick found that eight factors seem to influence behavior among VT
members most often.
These factors include:
Virtual D istance Modal
2
2
2
2
2
2
2
2
Cultural Distance
Social Distance
Relationship H istory
Goal Interdependence
Technical Skill
Interaction Density
Interaction Mix and Frequency
A ttention Contention
After creating the initial Virtual Distance Model, Sobel-Lojeski and her colleagues then
developed an assessment process, VECtor Analysis,
Hypothecs: There is a significantly negative

relationship between Virtual Distance and Key
Performance Indicators
to quantifiably measure the extent to which these

factors
influence
performance.
team
members
and
their
Using the Virtual Distance factors as
the independent variables and project success metrics
I
Virtual Diatanoa
as well as impacts on innovation and organizational

citizenship behavior as the dependent variables, they ran an initial study.
The
preliminary results suggest that their hypothesis, that the higher the Virtual Distance
measures, the lower the scores on key indicators of success, is supported. If these
results continue to hold true in larger populations, then the implications to
organizations about their long-term prospects for success using virtual and outsourced
resources could be significant and far-reaching.
2005 Karen Sobel Lojeaki
125
For example, Sobel-Lojeski, et.al, found that the higher the Virtual Distance the
lower the level o finnovation. Similarfindings were uncovered with respect to other
performance drivers.
Participating in the Research
Organizations wishing to participate in this research are asked to play an active role in a
case study process that includes both management interviews as well as the VECtor
Analysis described above. The ideal case study scenario is depicted below.
Approach to Case Study
VECtor Analysis
Benefits to the Participating Organization
Virtual Distance research participants will benefit from this innovative approach to
uncovering the potential downside risks to using virtual environments and outsourcing.
The case study will be specifically designed to optimize data collection and analysis for
the participant oiganization. Some o f the key benefits include:
1 Understanding how Virtual Distance is playing a role in their organizations and

potentially impacting key performance drivers at the company
1 Receiving summary analysis o f their organization internally as well as
comparatively speaking in terms o f other major corporations
2
Development o f initial recommendations about training and other interventions to

improve performance and mitigate potential risks
First-hand assessment and discernment of these issues by the experts who created
this approach and methodology
The opportunity to customize the assessment tool (VECtor Analysis tool) to

uncover specifically important issues for the participant oiganization
For More Information

To find out more about this research initiative and executive workshops under
development using the VECtor Analysis process, contact Karen Sobel Lojeski at
201.216.8259 or email her at klojeski@stevens.edu.
127
C h aracteristics of Virtual E n v iro n m e n ts
Virtual environments are most commonly characterized as geographically dispersed workers

using a combination of high technology and telecommunications to communicate with one
another.
1. Are there any other characteristics that you would include in a description of virtual
environments?
L ead ersh ip
Please describe the elements of leadership you believe are most important to your success.
1. How is the nature of virtual environments changing the way you lead? What do you
think you need to do as a leader that is different than in the past?
2. When dealing with a workforce that is in part or in whole virtual, how do you create a
vision?
3. As a leader, what can you accomplish face to face that you cannot do in a virtual
environment? How do you make choices about when to meet face to face versts
virtually?
4. How have virtual environments changed your own life as a leader?
5. What are the three biggest leadership challenges you face because of virtual
environments? What are the three biggest leadership benefits that you accrue from
virtual environments?
G2005 Karen Sobel Lojeski
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Table 16 - Glossary of Terms
Acronym
Term
CDiv
Cultural Diversity
CMC
Computer Mediated Communications
CS
Contribution Status
CSCW
Computer Supported Collaborative Work
CV
Cultural Values
DSS
Decision Support System
FDI
Foreign Direct Investment
FtF
Face to Face
GD
Geographic Distance
GDSS
Group Decision Support System
GSS
Group Support System
HCI
Human Computer Interface
ICT
Information and Communication Technology
IM
Instant Messaging
MT
Multi-Tasking
OCB
Organizational Citizenship Behavior
Q20Q5 Karen Sobel Lojeski
129
Acronym
Term
PS
Project S uccess
R&D
Research and Development
RD
Relational Distance
RelD
Relationship Distance
SEM
Structured Equation Modeling
SNT
Social Network Theory
SS
Social Status
TD
Temporal Distance
TmS
Team Size
TS
Technical Skill
VDI
Virtual Distance Index
VDM
Virtual Distance Model
VDT
Virtual Distance Theory
130
Transcript Excerptfrom Company A

In the long term the sense of urgency fades if there is no personal connection among team
members and the leader. Someone in a management position needs to have a concerned
look on their face for you to see. This will help you to remember that as part of this
team I have to pull through. And that is a biometric thing - something that needs to
happen in person. Without that - a team member can stay committed for a few days, a
few weeks maybe even a few months but over time it fades and they say to themselves,
I'm really not going to push m yself. You need a personal connection to keep up
momentum and commitment.
Transcript Excerptfrom Company B
You run into a struggle when it comes to issues of trust with your employees who work
in other places. You don't want to appear as if you are there checking on them all the
time. So you have to find a balance between normal monitoring versus creating a sense
that you are spying on them. Trust plays a strong role in this balance. And there you do
get into cultural issues between yourself, the team members and their individual
managers.
Transcript Excerptfrom Company C

You can't lose the personal touch. That is the bottom line. People are people. We still
rely on the personal touch and even building the client relationships we have to be at their
offices and with them in person if we are to be successful. The beauty o f the
collaboration tools today is that you don't have to wait to fly everybody in every quarter
to have a meeting. You can get in touch with them as situations arise and it is much more
helpful than years ago.
Transcription Excerptfrom Company D

When I went over to the UK, which is the first region where I deployed the ABC system,
I was working with people who were used to leaving the office at 5:00 because they had
lives and values that were different from ours. They do not stay at work till 6 or 7
o'clock every day and I didn't quite understand that. As an American, you would say,
what do you mean you are leaving at 5 o'clock?. But at 5 o'clock they were out the
door; they were out enjoying their lives. So that is just one small example of
understanding that when you are working with a different team that may be outside o f the
country, there are going to be some cultural value differences.
Q2005 Karen Sobel Lojeski
131
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2005 Karen Sobel Lojctki
143
Birth Date: December 20,1960

Birth Place: Forest Hills, Queens, New York
Marital Status: Married
2006 - Stevens Institute o f Technology
Ph.D. Technology Management
Concentration - Virtual W ork and Outsourcing
1983 - State University of New York - Albany
EDUCATION
Bachelor of Science
Majors - Applied Mathematics & Com puter Science
Minors - Humanities & Philosophy
Title
Virtual Distance: A Proposed Model

for the Study of Virtual Work
DISSERATION
Dissertation Advisor
Dr. Richard Reilly
Defense Completed on November 15,2005

Virtual Distance, the construct developed in this thesis, is an emerging
RESEARCH
form of perception among people who work across cultures and use
OVERVIEW
technology-based communications. The Virtual Distance Model is one
@2005 Karen Sobel Lojeiki
144
that provides insights into the issues that both enable and inhibit success,
innovation and leader effectiveness in a global network of corporations,
partners and individuals.
Virtual Distance, a multi-dimensional concept that incorporates both real

or geographic and spatial factors with perceived or psychological factors,
can be assessed qualitatively but importantly, can also be measured with the
Virtual Distance Index, a quantitative algorithm that provides business
leaders with critical information about their teams and organizations in a
multi-cultural, networked and distanced workplace.
RESEARCH
OBJECTIVES
RESEARCH
PROJECTS
UNDERWAY
At the crossroads of people, culture and technology, what are the most
salient issues regarding this new organizational form, the networked
organization, and how can Virtual Distance help to better enable
success and innovation at this juncture.
To uncover leader models that may add to what we know about leader
effectiveness in networked and virtual organizations. With the changing
nature of resource compliments, how and why are some leaders more
effective than others? Do we need new leader models to help prepare
managers for better handling multi-cultural, multi-layered, complex
networks?
As more and more work is outsourced and sent off-shore, what can
Virtual Distance help us to learn in order to create stronger partner
relationships and successful, long-term strategies?
Virtual Leadership - Research Question: Are current leader models
appropriate for guiding the new generation of virtual leaders or are
other, new forms of leadership necessary to maximize performance of
virtual work teams? A new model of Ambassadorial Leadership is
being developed to help academics and practioners understand the most
salient characteristics and behaviors for effective virtual leadership.
Virtual Communications and Thin-Slicing - Research question: How

accurate are first impressions when it comes to assessing someones
personality in the first set of email or chat exchanges in virtual work?
How do these impressions impact decision making, team participation
and performance?
145
Virtual Communications and Personality Profiles: Finding the Fists in

Virtual Communications - Research question: Can emails be assessed
for personality imprints?
Refereed
Reilly, R.R., Sobel-Lojeski, K., Dominick, P. (2005) Virtual Distance, A

Preliminary Study. Presented at the 20th Annual conference of the Society
for Industrial and Organizational Psychology, Los Angeles, California.
Accepted - Sobel-Lojeski, K., Reilly, R.R., Dominick, P. (2006) Tbe Role of
Virtual Distance in Innovation and Success. To be presented at the 39th
Annual Hawaii International Conference on System Sciences. Kauai,
Hawaii.
Invited Speaker to the World Bank on the subject of virtual teams and
virtual leadership. Presented Virtual Distance Model, study results, and
recommendations for leaders in the 21st century in June, 2005.
PAPERS fit
PRESENTATIONS
Reilly, RJt.., Sobel-Lojeski, K., Ryan, M. (2005). Leadership and

Organizational Citizenship Behavior in E-Collaborative Teams - Submitted
to IRMA Conference
Papers U nder Submission

Sobel-Lojeski, K., Reilly, R.R. (2006). Virtual Distance and Cross-Cultural
Issues in Technology. JlTTA.
Sobel-Lojeski, K., Reilly, R.R., (2006). Project Workload and Innovation in

Virtual Collaborations. AMCIS Conference, 2006
146
Non-Refereed
Sobel-Lojeski, K. and R. Reilly (2005/ Leadership and Virtual Teams Making it Work in the 21st Centstry Global Organization. NETWORK.
Sobel-Lojeski, K. (2005). Managing Outsourcing Strategies to Ensure

Sustainable Innovation Performance. SATM. 1.
Sobel-Lojeski, K. (2004). The Impact of Outsourcing on Innovation.

NETWORK.
OTHER
PUBLICATIONS
Reilly, R. R., Z. H. Aronson, Sobel-Lojeski, K (2004). Interagency

Cooperation in Port Security: Organizational Behavior. Hoboken, New
Jersey, Stevens Institute of Technology.
Invited Speaker to the 2005 Outsourcing Conference BITS - Financial

Services Roundtable November, 2005.
Sobel-Lojeski, K. (1998). Trends for the eFrontier. New York, New York,
Mercer Consulting Group.
Invitation to Submit Encyclopedic Book Chapter - Chapter on Virtual

Distance in Encyclopedia for eCollaboration with Reilly. Also with Reilly
147
and Ryan, contribute to chapter on Virtual Leadership in same publication.
ClOInsight Magazine. (2006). New Column. This column will begin to

appear at ClOInsight Magazines website in early April, 2006. The column
will feature new questions for the Digital Age - meant to spur discussion
on how to break away from our old models of thinking about Information
Technology and find new ways to approach newly-faced issues and
challenges.
CITATIONS
ClOInsight Magazine. (2006) Measuring Virtual Distance
QUOTES
Entrepreneur Magazine. (2005) Fantastic Forum.
IN
CURRENT
ClOInsight Magazine. (2005) Four Ways to Make Virtual Teams Work.
PRACTIONER
MAGAZINES
ClOInsight Magazine. (2005). Make Your Team Stronger by Bridging

Virtual Distance.
ClOInsight Magazine (2005). Ending the Emotional Friction in Virtual

Teams
eWeek Magazine (2005). Ending the Emotional Friction in Virtual Teams.
GRANTS AND
FELLOWSHIPS
Center for Technology Management Research (10,000)

Stanley Fellowship
02005 Karra Sobel Lojeski
148
Stevens Institute o f Technology

Hoboken, NJ
2005
Position: Affiliate Faculty

Program: Master of Science in Information Systems
Course Name: Relationship Management and IT Outsourcing
New course offered in Fall 2005 as part of a 4-course series in Outsourcing

and Information Systems. Developed all course materials and syllabus, inclass exercises and discussion outlines.
TEACHING
Institute for Strategic Business Development

Scottsdale, AZ
1994-
1997
Position: President and Professional Trainer
Responsible for developing training and professional development programs

for corporations in Financial Services, Technology, Industrial
Manufacturing, Non-profit organizations and more Training topics
included:
149
Relationship Management
Teamwork
Leadership
Developing Winning Presentations & Public Speaking
Conflict Management
Negotiations
Leading Multi-Million Dollar Projects
Strategic Business Planning
More...
T hroughout Career
Position: Leader Specialist in Training and Development
In addition to running a business that included training and developing

hundreds of managers and leaders, throughout my career I have been
selected by the organizations I have worked for to lead and facilitate
workshops and training sessions in a variety of areas including:
Leadership Development
Industry Training (Financial Services, Healthcare, Pharmaceuticals,
etc)
Strategic Business Planning
New Hire Development
Developing Effective Operational Plans
Technical Training on new products (e.g. LINC for Unisys
Corporation, Cash Management Work Station for Chase Manhattan
Bank, N.A.)
References to this and other work are available upon request.
150
Stevens Institute o f Technology

Hoboken, NJ
2002-Present
PROFESSIONAL
Position: Program Executive
EXPERIENCE
Business and Technology Undergraduate Program
Responsible for running the Business and Technology Undergraduate

Program at the Howe School for Technology Management including
developing corporate relationships for internships for undergraduates,
curriculum planning, scheduling, and university relations.
Xansa, Inc.
New York, NY
2001-2002
Position: Senior Vice President - N orth America

Responsible for North American division for large UK-based IT
management and outsourcing consultancy. Product and service lines under
2005 Karen Sobd Lojeriri
151
division included Customer Relationship Management (CRM), Enterprise

Resource Planning (ERP), Supply Chain Management (SCM), and
Enterprise Application Integration (EAI). Worked with partners and major
clients across the United States on Siebel, SAP and other enterprise solution
design and implementation projects. Major clients included Harley
Davidson Financial Services, Diageo.
Prolifics, aJYACC Company
New York City, NY
2000-2001
Position: Chief Operating Officer & Executive Vice President

Recruited from Mercer Consulting Group to work directly with CEO, to
re-engineer the organization and make ready for acquisition. Re-designed
organization including sales, marketing, consulting, strategic business
development and operations. Responsible for all company P&L and
managed approximately 200 people. Changed pricing and profit models to
enhance value-based project work. Worked closely with Worldwide head of
IBM WebSphere to create partner relationship. Successfully attracted
investors for acquisition.
02009 Karen Sobel Lojaki
152
Mercer Consulting Group

New York City, NY
1997-2000
Position: Principal & Senior Consultant - Strategy and Sales

Effectiveness Practice
Responsible for senior management consulting practice focused on
improving clients strategic planning in all organizational areas. Specific
emphasis around Customer Segmentation, Channel Selection and
Economics, Sales Processes, Organizational Design, Value Propositions and
Compensation. Developed Approach-To-Market strategy for Financial
Services industry vertical. Specialist in strategic issues and e-business related
strategies. Conducted and wrote major study entitled Trends for the eFrontia* with case studies developed from 8 major corporations including
Chase Manhattan Bank, National Semiconductor, Nabisco, Charles Schwab,
John Hancock, Cabletron, Grainger and Cisco Systems.
Institute for Strategic Business Development
Scottsdale, AZ
1994-1997
Position: President & CEO

Responsible for all aspects of own consulting and training firm; business
development, sales, marketing, professional training development and
153
delivery and P&L. Developed strategic business plans for corporations to

enhance revenues. Delivered management workshops and training
programs on Change Management, Teamwork, Consultative Selling, Power
Presentations and Effective Negotiating. Produced business plan, which
successfully drove $7MM in venture capital to fund a start-up software
company. Representative for Holden Corporation developing Relationship
Management Training programs to large corporations. Public speaker to
hundreds of executives at major conferences including Bank Securities
Association, "Developing Pro-Active Sales & Marketing Strategies", and
many other events.
Stratus Computer IncNew York C ity, NY & Phoenix AZ
1988-1994
Position: District Manager
Built thriving financial services and commercial sector business in New

York. Promoted and moved to the western region as head of the Southwest
and Rocky Mountain District. Managed a sales, technical, customer service
and administrative team selling large mission-critical and fault-tolerant
systems and integration services to major corporations. Increased revenues
over 2000% in new business. Presidents Club 1989,1990,1991,1992,
1993. Account Executive of the Year, 1989; District Manager of the
2005 Karen Sobd Lojetki
154
Year, 1993
Chase Manhattan Bank, N.A.
New Yoik City, NY
1985-1988
Position: Vice President - Domestic Institutional Bank

Responsible for creating strategic business plans and major account strategies
to increase revenues in the Cash Management and Non-Credit Services
group for Domestic Institutional Banking clients. Developed product
strategies for the Chase Institutional Money Market Account (CIMMA) and
the Chase MicroStation (predecessor of current cash management ecommerce offering). Awarded "Outstanding Achievement Award in
1987 for Global Services Products Division. Managed a team of relationship
management officers, product support specialists and administrative
personnel for global product rollouts. Increased client balances by 110% and
expanded new business in major money center cities across the U.S.
Completed Chase Credit Training Program in 1987. Participated on the
Third World Debt Restructuring Committee co-chaired by the IMF and
World Bank. Won the largest single Chase Institutional Money Market
Account (CIMMA) deposit of a bank for $160MM.
155
Burroughs Corporation
New York, NY
1983-1985
Position: Maior Account Executive
Successfully completed the Burroughs Sales Training Program. Responsible

for all sales and relationship management for the Federal Reserve Bank of
New York and American Express - Global Relationship Management. New
User Business Award, 1984.
Donnelley Marketing Information Systems
Stamford, Ct.
1983 & Internship last summer in college
Position: Systems Engineer
Developed major demographics application for use by corporate and

governmental agencies to analyze demographic information in the United
States. Worked with the US Census bureau and databases. Programmed
system to digitize maps and determine population statistics based on varying
input parameters. Major governments included Japan, Canada, US.
Worked with The New York Times and other media organizations to
supply demographic data on varying dimensions for major news stories.
INTERNSHIPS
Donnelley Marketing Information Systems

Stamford,, CT
02005 Karen Sobd Lojetki
156
1983
Position: System Engineer, See above
IBM
Harrison, New York
1982
Position: Pre-Professional Junior Programmer
Project - Developed Surplus/Excess Inventory system for Sterling

Forest location.
Price W aterhouse
New York, New York
1981
Position: Audit Assistant for Depository Trust Company Annual
Audit
Project - Assisted w ith manual confirmations to stock certificate

holders. Advised on ways to computerize confirmation
process.
MEMBERSHIP IN
PROFESSIONAL
Academy o f M anagement
02005 Karen Sobd Lojcski
157
ORGANIZATIONS
Strategic Management Society
Society for Industrial and Organizational Psychology
National Association for Professional Management Consultants

British American Business Association
02003 Karen Sobd Lojeaki

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Virtual Distance: A Proposed Model for the Study of Virtual Work

Dr. Richard iteilly, Chairman

Dr. warren Axelrod

STEVENS INSTITUTE OF TECHNOLOGY

UMI N um ber: 3223521

All rights reserved.

ProQuest Information and Learning Company

Virtual Distance: A Proposed Model for the Study of Virtual Work

Author: Karen Sobel Lojeski

THE RESEARCH QUESTION....................................................................14

IMPLICATIONS AND CONTRIBUTIONS..............................................16

II. REVIEW OF RELEVANT RESEARCH................... ............................................... 17

REVIEW OF VIRTUAL TEAM (VT) STUDIES AND DISTANCE FACTORS 28

LIMITATIONS OF THE RESEARCH.......................................................47

THE PROPOSED MODEL...............................................................................49

m.I CONSRUCTS AND OPERATIONAL DEFINITIONS................................ 49

IV.II DATA ANALYSIS............................................................................................. 61

V.II PRELIMINARY ANALYSIS OF VIRTUAL DISTANCE VARIABLES.... 65

VII. PRACTICAL IMPLICATIONS AND FUTURE RESEARCH........................ 100

Appendix 2 - Research Overview Sent to Prospective Participants............................ 121

Figure 1 - Model of Virtual Distance and Mediating and Dependent Variables..

Table 11 - Literature Review Analy..............................................................................I l l

Table 13 - Table of Literature Databases Created........................................................ 115

THE RESEARCH PROBLEM

Rapid acceleration o f globalization (Friedman 2005);

Two Distinct Literature Streams

Virtual verms Traditional Teams

Distance Constructs Constrained to Physical Factors

As Stephen wrote, it is time to let go of some o f our time-honored relationships

THE RESEARCH QUESTION

The research question was therefore stated as follows:

I.IV IMPLICATIONS AND CONTRIBUTIONS

In addition, this chapter includes a comparative table o f some VT studies as described in

I l l REVIEW OF THE LITERATURE

In his 1997 paper Virtuality, Turoff wrote:

(Safferstone 1998; Ahuja 2000). Interaction among VT members may be influenced by

Distance therefore can be seen as a fundamental concern in many disciplines. For VT

Most global VT research considers Geographic Distance (GD) as a fundamental

Factors Influencing Distance

i. Geographic Distance (GD)

2. Temporal Distance (TD)

3. Relational Distance (RD)

4. Cultural Distance (CD)

5. Social Distance (SD)

6. Relationship History (RH)

8. Face to Face (FtF) Interaction

9. Team Size (TmS)

11. Technical Skill (TS)

ILII REVIEW OF VIRTUAL TEAM (VT) STUDIES AND

Assumptions for Virtual Team Study Analysis

VTs can be hierarchical and centralized from a

VTs took longer to reach decision, but had equal

Participation more centralized in VTs. In VTs, males

No difference between VT and TT in cohesiveness,

Social Presence &

TT reported greater social presence, communication

Over time, VT members will exchange enough

No difference between teams decision quality. VT

Conflict resolution and cohesiveness both initially

5 types of communication problems identified from

Org. workers &

TT greater leadenhsip stability. VT leadership

TT more effective planning, revising/writing,