The challenge of virtual organisation: critical success factors in dealing with constant change

The shift towards virtual organisation is related with a fundamental change in organising and managing daily operations. The success of collaborative work therefore relies not merely on the introduction of different technologies, but also on critically analysing the “human” aspects of organisation. Virtual teams bring people together across disciplines, departments, functions, and geographical locations. This paper draws on the literature with respect to organisational change, and particularly results from human and organisational research carried out in the OSMOS (IST‐1999‐10491) project. Within the context of the OSMOS project, interviews with senior managers of each of the participating industrial organisations were conducted. From the analysis of these interviews four major organisational issues emerged, which virtual teams or e‐businesses need to address before moving forward. These are: information sharing, organisational culture and teamworking, acceptance of change and training. The paper investigates the above issues and explores potential solutions in order to support virtual organisations and e‐businesses in dealing with continuous change. From this investigation the paper proposes critical success factors that the authors believe to be necessary in dealing with such change.