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This paper describes the experience of a globally distributed organization, as simulated across three MBA programs. The students, located in each of three countries, worked collaboratively in teams to create a common project, using technology as a means of communication. Observations were made of local team interaction, as well as the intergroup exchange that came about from merging the local teams into a larger global team. The project revealed some weaknesses in technology as a communication tool, as compared to face‐to‐face interaction. Nevertheless, the findings support traditional group theories ‐ theories developed through observation of face‐to‐face groups. The existence of mutual accountability and evaluation, superordinate goals, and the tone of the initial group meeting were found to be key for successful task completion and group satisfaction. Building a team in a virtual setting was found to be more difficult than in a face‐to‐face environment, but not impossible. Team‐building factors that might be implied in a local arrangement, had to be made explicit in the virtual setting, as opportunities did not exist for clarifying intentions outside of the meeting place. Additional experience in using the technology as a means of communication should reinforce this need for clarity, as managers become accustomed to fewer opportunities for communicating implications.

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