Challenge and Complexity of Virtual Team Management

To thrive in our global economy, businesses must continually seek ways to maintain a competitive advantage by supplying the market with innovative and effective products and services. To do this, barriers of space and time must be overcome, conventional business processes must be enhanced, and customer demand must be promptly answered by high-quality, low-cost, or value-based products and services. One way for companies to meet these fast-paced market demands is by utilizing virtual teams. With virtual teams, companies can expand their talent pool beyond geographical barriers. Furthermore, they can incorporate a follow-the-sun process in their business strategy. Combined, this leveraged approach can better position companies to meet market demands in a more timely and cost-effective manner. However, to achieve this competitive advantage, business leaders must thoroughly understand the challenges associated with developing and managing virtual teams. This research chapter examines the reasons for utilizing virtual teams, challenges that stem from diversity, structural and behavioral characteristics, and managerial considerations for effective leadership, supporting technologies, best practices, and future implications.