Abstract

     The rapid development of information and communication technology (ICT) has resulted in several improvements in diverse aspects of the organizational structures, including the introduction of virtual teams (VTs). Organizations rely on VTs since they bring a lot of benefits, such as the enhancement of organizational performance. However, effective VTs cannot exist without the proper implementation of decision-making processes. There is a lack of scientific research that attempts to understand the factors affecting decision-making processes in VTs. Studies in this area have only been conducted in the United States and Europe. However, such research has not been conducted in the Middle East, where specific scientific solutions are still required to improve the performance of VTs. Therefore, this study is conducted in the Middle East to gain scientific knowledge on this region’s specificity. Thus, the objective of this study is to identify the factors that affect VT decision-making processes. An online survey was used to collect data (Google forms) from companies in the IT industry in UAE, which are engaged in VTs. A literature review, survey methods, and structural equation modeling were used. The results showed that culture intelligence (CQ), transformational leadership (TL), and task conflict have a positive effect on VT decision-making processes, and relationship conflict has a negative impact on VT decision-making processes, which provides the management teams with a guideline on what to concentrate on in the measuring and enhancement of the effectiveness of VT decision making.

Introduction

     The most important changes that face organizations are caused by information and communication technology (ICT) (Al Majzoub and Davidaviˇciene˙ ۲۰۱۸). ICT has caused the formation of a new type of team work called virtual teams. The use of virtual teams is important for organizations because they allow team members to communicate, despite distance and time constraints. They allow organizations to hire the most talented people regardless of the location, which increases the efficiency of the team (Schmidtke and Cummings 2017). VTs are defined as “groups of people who are geographically and/or organizationally dispersed and who rely on collaboration technologies to carry out tasks” (Lowry et al. 2015). VTs bring advantages to organizations, such as the presence of diverse staff, innovation allocation of resources, flexible organizational structure, enhanced decision making and an increase in organizational performance (Bhat et al. 2017). Even though VTs provide benefits to the organization, they impose challenges to perform effectively. One of the essential factors that affects VT performance is decision-making processes (Wei et al. 2017). To date, there exists a case of scarcity in academic research in the field of decisionmaking processes in virtual teams (Davidaviciene et al. 2020; Drouin and Bourgault 2013; Tan 2019; Zakaria 2017). Most of the research is conducted on university students instead of actual organizational virtual teams (O’Neill et al. 2016; Organ and Flaherty 2018; Paul and Dennis 2018). From the literature review, it could be concluded that there is a lack of research that examines the effect of these three factors—conflict, culture and leadership—on the decision-making process in UAE.

Conclusions

     VT decision making is an important key indicator of VT performance, and hence organizational performance. Organizations must understand and measure the key factors that affect decision making and team performance in an organization and work to enhance it to be able to obtain its market share and be competitive. This article aimed to identify the following factors—CQ, TL, and task and relationship conflict—that affect VT decisionmaking processes. Based on the empirical research conducted, it can be concluded that CQ, TL, and task and relationship conflict are important factors to consider when measuring VT decisions, as the results show that culture intelligence (CQ), transformational leadership (TL), and task conflict are positively correlated with decision-making processes, and relationship conflict is negatively correlated with decision-making processes in VTs. This article provides a guideline for management in an organization to measure VT decision making. For example, when measuring decision making in VT, management should concentrate on how to enhance the following factors—cultural intelligence, transformational leadership, and task conflict—and how to eliminate or reduce relationship conflict factors between members in VTs. Measuring and controlling these factors will help an organization to enhance its VT decisions, which in turn will improve VT performance. In addition, this study proposes a framework for future studies to add factors to these models and create new models, not only to measure but also to implement strategies that can be used to enhance the VT decision-making process and hence improve VT performance. As all research does, this study has limitations. The first limitation of this study is the use of four factors affecting decision-making processes. However, there are other factors that affect decision making that were not included in this study, such as trust, ICT, etc. Second, the study was conducted among organizations in the IT industry. Future studies should include other industries. Third, this study was conducted in the U.A.E. Future studies should include countries in the Middle East in comparison with other regions. Future studies also should include all the mentioned limitations