When is virtual virtuous?

It is argued that only large companies have the scale and scope to co‐ordinate complementary innovations, and managers need to consider other factors relevant to a virtual organization's ability to innovate.

Abstract

Contends that ‘the virtues of being virtual have been oversold’, particularly regarding organization for innovation. Posits that managers need to consider other factors relevant to a virtual organization's ability to innovate — such as different forms of innovation and knowledge, these are: autonomous and systemic innovation; and codified and tacit knowledge. Recounts that companies like Intel and Microsoft have made extensive investments to continually develop their capabilities — arguing only large companies have the scale and scope to co‐ordinate complementary innovations