On the theory of virtual organization

Virtual organization is a way of structuring and managing goal-oriented activities. This innovative approach to organization is based on a categorical distinction between the requirements of a task and the elements capable of satisfying them. The distinction supports dynamic switching between satisfiers for the same requirement. Switching, used properly and systematically, can yield dramatic improvements in task performance. Although conceivable without computer communications, virtual organization would not be practicable without the technology; and the concept itself is closely related to constructs such as virtual memory and virtual reality. This paper is intended as a contribution to the development of a theory of virtual organization. The focus is on the nature and inner workings of this innovative approach to organization; social consequences are not considered here. Using the framework presented in an earlier article by the author, the definition, applicability, and socio-technical foundations of virtual organization are elaborated. © 1997 John Wiley & Sons, Ltd.