Panel 8 The IT-Based Virtual Organization

A virtual organization uses IT to function like a traditional one. A number of articles in the popular press have espoused the virtue of the “virtual office ” or “virtual corporation. ” According to Apgar (1993), “the changing nature of work is challenging deeply held beliefs about the workplace (where facilities are located) and the workspace (individual areas that people occupy). ” Proponents for the virtual office or virtual corporation suggest that organizations can realize significant savings while increasing the output or productivity of the firm. Others have pointed out that the managerial and personal implications of the virtual organization may require us to rethink what we mean by an organization (Lucas and Baroudi 1994; Handy 1995). The objective of this panel is to discuss what it means to be a virtual organization from an organization design theory point of view and suggest further avenues of research related to the virtual organization concept. This will be accomplished through presentation and discussion. The panel format will be as follows. Hank Lucas will kick off the panel by reviewing the literature that has influenced our thinking regarding information technology, organization design and the virtual organization. Following the literature overview, Lucas will highligh