Gregor, Shirley and Wassenaar, Arjen and Marshall, Stewart
(2002)
Developing A Virtual Organization:
Serendipity Or Strategy?
Asian Academy of Management Journal (AAMJ), 7 (1).
pp. 1-19.
ISSN 1394-2603
Abstract
This paper addresses the question of how virtual organizations that yield strategic advantage are
formed. The study uses grounded theory to investigate the organizational processes and structure
that facilitate the formation of a successful virtual organization. We present a case study of one
virtual organization, a university in Australia, which has gained strategic advantage from alliances
supported by information and communication technologies (ICT). The university is now the fastest
growing university in Australia in terms of international student enrolments. The case study
suggests that this commercial success is based on responsiveness to environmental conditions and
organizational factors that include a long history as a distance education provider (an early form
of virtualization), sophisticated information communication technologies, and a culture of
innovation and risk-taking. The development processes observed included evolutionary growth,
decisive actions and management leadership at opportune moments, and examples of technological
and entrepreneurial innovations led by individuals. Significant decision making occurred outside
formal strategic planning processes.
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