Unpacking the Concept of Virtuality: The Effects of Geographic Dispersion, Electronic Dependence, Dynamic Structure, and National Diversity on Team Innovation

TLDR

The study investigates how four dimensions of virtuality—geographic dispersion, electronic dependence, structural dynamism, and national diversity—each impede innovation and can be alleviated by a psychologically safe communication climate. To test these claims, the authors conducted qualitative interviews with 177 team members from 14 diverse organizations and a survey of 266 members from 56 aerospace design teams. Results reveal that the four virtuality dimensions are largely independent, each negatively affects innovation, and that a psychologically safe climate mitigates their adverse impact.

Abstract

To understand why the virtual design strategies that organizations create to foster innovation may in fact hinder it, we unpack four characteristics often associated with the term ‘virtuality’ (geographic dispersion, electronic dependence, structural dynamism, and national diversity) and argue that each hinders innovation through unique mechanisms, many of which can be overcome by creating a psychologically safe communication climate. We first tested the plausibility of our arguments using in-depth qualitative analysis of interviews with 177 members of 14 teams in a variety of industries. A second study constituted a more formal test of hypotheses using survey data collected from 266 members of 56 aerospace design teams. Results show that the four characteristics are not highly intercorrelated, that they have independent and differential effects on innovation, and that a psychologically safe communication climate helps mitigate the challenges they pose. We discuss the implications of these findings for theory and research.