Is the V-form the next generation organisation? An analysis of challenges, pitfalls and remedies of ICT-enabled virtual organisations based on social capital theory

ICT-enabled virtual organisations (VOs) are regarded as the appropriate organisational response to turbulent markets. Although much has been written about the structural characteristics and propositions of VOs, their inherent limitations and structural shortcomings remain largely unaddressed. Based on the structural properties of VOs, most frequently discussed in the literature, we introduce the V-form organisation as an ideal type of VOs. A conceptual analysis, however, reveals a mismatch between espoused benefits of the ideal type and preconditions in terms of collaborative practices needed to succeed in a turbulent environment. Dealing with complex tasks in a collaborative environment requires shared understanding, shared values and a level of social cohesion, which do not simply emerge in a virtual setting. Social capital theory addresses the social and cultural preconditions of collaboration. Our analysis shows preconditions for successful value creation in VOs and suggests management measures to foster and facilitate environments for the development of social capital.