Introduction
A multicultural organization is an organization characterized with a workforce of people from diverse social and cultural backgrounds. The workforce includes people from diverse religious, ethnic, racial and gender backgrounds, including those from minority social cultural backgrounds at all levels and in all departments of the organization (Wang & Chan, 2009). Virtual organizations are organizations primarily supported by technology such as World Wide Web, Internet, telecommunications, EDI, e-mails, videoconferencing and groupware. Organizations have been encouraged to become virtual to derive benefits that include lower overhead, lower labor costs, increased employee morale, more project options and flexibility (Wang & Chan, 2009). The seminar themes enable supply chain manager to appreciate virtual organization as a strategy to have an organization that is robust, flexible, autonomous and responsive to client demands. This calls for adoption of ICT and Internet systems that are able to support and maintain virtual organization on an inter-organizational network depending on capabilities of partners (Müller, Spang & Ozcan, 2009). For the management, the seminar lessons afford the manager with insights into dealing with communication, interpersonal, cultural, technological and economical challenges. Many studies now concur that virtual organization does not require control of people at large, but what is needed most is the control of the process (Samdantsoodol, 2012). Promoting project vision, maintaining respect, setting goals and enabling accountabilities of all members regardless of one’s geographical location should be considered while one is controlling the process. Courtesy of the seminar, one finds competency needed in e-leadership to maintain trust and performance among all parties involved in the virtual team (Rozkwitalska, 2009).
In a virtual organization, where employees of the enterprise use information technology to support their communication and work, team members are usually dispersed in different time zones of the world. The members are likely to be of different cultures and communication languages (Burchell & Gilden, 2008). Despite the time zone challenges, cross cultural differences and communication language barriers may bring conflicts due to poor deadline adherences and lack of trusts across virtual network. The other challenge can be creating interpersonal relationships and cooperation among members with dissimilar social cultural backgrounds (Rozkwitalska, 2009). Members of different global zones may have different perceptions regarding people from other global zones. Since virtual organizations are completely dependent on technology, the organization can be challenged in ensuring compatibility and integration of software and hardware among all participants in the virtual team (Wang & Chan, 2009). Setting up the virtual technology can be costly, especially during acquisition, installation and implementation of pertinent hardware and software. The concept of multi-cultural management in virtual organization seems a recent concept. In this regard, there are no many original research findings that have covered it. The available literatures continue to espouse a wide range of deficiencies: they have small samples, use single case studies, and have too many anecdotal evidences. In this way too, there have been no comprehensive studies regarding impacts of multi-cultural virtual teams on an organization. By assessing these impacts, one will be able to tell whether multi-cultural virtual organization is beneficial or not. The researcher can then delve in theories explaining the concept of multicultural virtual organization to determine how the positive impacts can be maximized as negative ones are mitigated. Measures of maximizing positive impacts and mitigating negative impacts will also involve propositions of acquiring right technologies (Wang & Chan, 2009; Rozkwitalska, 2009).
ANALYSIS OF THE FIELD
Analyses of the management of virtual reveal that managers are still faced with some dilemmas that have to be addressed. Balancing trust and control has become a formidable dilemma for virtual organization managers. Studies have indicated that although geographical distances do not erode trust, the management’s style of control can impact negatively or positively on trust among members of overseas (Lee, 2016). While managers would like to reduce risks by implementing proper control, there may be cases whereby members from overseas misinterpret the control measures as lack of respect (Samdantsoodol, 2012). The other dilemma concerns differences in time zones. Since members of the virtual team may be from different locations across the globe, it may be hard for people to change their working habits (Lee, 2016). Technological factors have resulted in some dilemmas: although an organization may be motivated with implementing virtual organization function, it may be hampered with lack of technology (Samdantsoodol, 2012). Technological dilemma may also arise when it is noted that either party is not competent or ethical in protecting another party’s data (Lee, 2016). Since virtual organization involves considerable costs in equipment acquisition, installation and maintenance, the bill can become quite steep for all or either sides to keep. In this way some partners may miss deadlines and necessity to rework, resulting in loss of efficiency and profit (Wang & Chan, 2009).
IMPACTS OF MULTICULTURAL VIRTUAL TEAMS IN SUPPLY CHAIN MANAGEMENT
Virtual supply chain can be considered any supply chain that is connected through electronic links, representing an organization structure that facilitates effective and efficient flow of both information and physical goods in seamless fashion. Due to electronic links, the virtual supply chain can be distinguished from the traditional supply chain by its flexibility, speed and adoptability (Wang & Chan, 2009). Reconfiguring the organization structure can even happen in real time. This enables the firm to provide different kinds of solution on real time basis and adjust quickly according to customer needs. New members can continuously be added and old ones deleted or reassigned to different roles within the same chain (Rozkwitalska, 2009). In studying virtual organization in relation to supply chain management, researchers have tended to employ two theories. The first theory has perceived virtual supply chain as the newer development in the activities of supply chain management. Its proponents have assumed that organizations are being pressured to adopt modern online technological environment by their clients (suppliers and customers) (Hambley, O'Neill & Kline, 2007). The second theory has perceived virtual supply chain management on the management point of view. Its proponents view the development of virtual organization as the new aspect of development in organization structure (Shachaf, 2008).
The origin of virtual supply chain can be traced back from the advent of e-commerce. E-commerce enabled initial communications and information sharing between companies. As traditional methods of logistics became increasingly incapable of managing logistic service and product requirements, continued innovations in e-commerce technologies resulted in virtual organizations (Wang & Chan, 2009). To provide faster and flexible responses to customer needs in a much complex environment of neck-breaking competitions, virtual supply chain management was indeed needed. Pioneer firms in this regard were those engaged with perishable products like fresh vegetables and fresh fruits. To make the grocery supply chain more competitive, grocery retailing firms such as Kurt Slam Associates improvised their point of sales systems that transferred selling information to distributors and producers. In response to today’s increasingly competitive business environments, many business firms are taking global approach to increase market share, sales and profit, and take advantage of efficiency of input production and sourcing (Wang & Chan, 2009). In recent years, many scholars have argued that the current competition is not between firms but between supply-chain networks. It is by this reason that information technology is not only seen as a mere resource to support the business, but also as a competitive advantage. Innovation of virtual supply chains among rival networks have focused on providing real-time information, e-commerce, globalizing service demand, visibility of performance indicators, and collaborations among supply chain players (Gunasekaran & Ngai, 2004).
Current major virtual supply chain projects are started by associated firms or by subordinates of a diversified multinational corporation. Some of the notable supply chain organizations that employ virtual organizations are American –On-Line (AOL) and Lastminute.com; businesses that involve in B2B and B2C strategies have tended to adopt virtual organizations (Wang & Chan, 2009). Electronic Business using eXtensible Markup Language (ebXML) and eXtensible Markup Language (XML) are some of the internet-based portal technologies that can support virtual organizations. Other essential technologies include EDI, Groupware, Virtual reality, World Wide Web, wireless technologies, internet and extranets, and other collaborative technologies (Gunasekaran & Ngai, 2004).
Impacts of Virtual Supply Chain
Upon the correct implementation of the supply chain management strategy, all players on the network have experienced low-cost commerce environments. In a bid to remain competitive, supply chain companies are trying to achieve low manufacturing costs while increasing quality standards with the maintenances of low cost overheads (Lee, 2016). They are also be able to distribute their products to different members of different (multiple) countries (Samdantsoodol, 2012). Complicated production process has been eased. Initially, the supply chain companies experienced tall orders of coordinating amongst many parties of multiple countries, by sustaining lead time standards, and inventory levels to maintain customer satisfaction levels (Samdantsoodol, 2012). Virtual supply chain management has ensured flexibility; electronic connections among members of the virtual network enable the organization to assign or reassign orders to new members, and engage and disengage the exiting member (Lee, 2016). Common system of protocol among members of the virtual team allows collaboration and coordination and efficient communications among different vendors in the world (Samdantsoodol, 2012). This has enabled many large businesses in different parts of the world to work together as one large business. The internet-based infrastructure has allowed easy cross- checking of order statuses, inventory levels and product delivery schedules. Since all members are usually connected on the internet, problems can easily be identified and addressed. This would minimize downtime effects on production and selling schedules. Ultimately, the end result becomes increased customer satisfaction, since everybody in the team works to ensure that only the best quality is provided on time (Rozkwitalska, 2009).
The virtual supply chain has decreased the time taken by companies to market a product. Once the organization becomes integrated on a supply chain network, it will take the shortest time possible for production and marketing processing (Samdantsoodol, 2012). In fact when all members embrace the just-in-time policy which ensures much minimized time when finished products are taken to the end user within the shortest time. Virtual supply chain increases profitability and reduce costs. Collaborations among different parties on the same chains ensure that no extra raw materials or finished products are wasted (Rozkwitalska, 2009). Failure to adopt better and newly innovated procedures will see many companies losing the businesses to rivals. It is expected that these practices will become of the norm in future (Macduff, 2006). However, as already noted, virtual supply chain can lead to cultural heterogeneity and dispersion. Cultural and communication language differences can leads to miscommunications, which can jeopardize cohesion, trust and team identity (Samdantsoodol, 2012).
Importance of this Study and Next Areas of Research
This study enables business organizations, public organizations and other organizations to appreciate the fact that virtual organization has become a competitive factor. It enables faster and effective communication and collaborations among or between partners so that they can take global approaches to increase market share, sales and profit, and take advantage of efficiency of input production and sourcing. By discussing dilemmas in virtual organizations and ways of solving them, the organization will become more competitive. The study also enables players to realize that current global competitions among firms are majorly based on effectiveness of supply chain networks.
Communication and trust seem to be the most important factor of maintaining virtual supply chain management. More studies are needed on criteria of selecting partners on the supply chain network. This should also include ways of assessing risks involved in such selection (Wang & Chan, 2009). Next studies should also delve in optimal technology selection and effective network organization modes among partners depending on the types and volumes of goods traded, numbers of partners on the network, and sizes and natures of the organization (Samdantsoodol, 2012). Nonetheless, since online frauds are increasingly troubling many internet-based organizations, the issue of security and data protection has to be addressed (Rozkwitalska, 2009).
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