MBA 606

656796 Network Structure in Virtual Organizations

Manju K. Ahuja1,* and Kathleen M. Carley2,*

This topic was chosen because it does highlight key elements of where work is done and how communication as well as coordination helps companies to achieve their business objectives. This framework of business has proven to be successful in modern design of work. Virtual organizations can be categorized under networked organizational structure. Networked organizational structure are characteristically flexible, adaptive and highly decentralized decision rights and utilize distributed information and communication systems to replace inflexible hierarchical controls with controls based in information systems (page 82). However, the author of this article utilized empirical evidence to suggest that, virtual organization utilizes hierarchy in communication flow. I am tempted to agree with the author because is makes it possible for future studies to examine these additional factors that may through more light on virtual organizations.
The results of the study conducted by Munju and Carley 2006, indicates that virtual organizations can exhibit considerable hierarchical tendencies. The author continues their finding appears to contradict the predictions of non-hierarchical and decentralized structure in virtual organizations. Keri and carol also agrees in the sense that, they argue that key decisions are made at the top and filter through the organization in a central fashion. Hierarchical structures which are sometimes called vertical structure are most suited to relatively stable and certain environment where the top level executives are in command of information needed to make critical decisions. This allows them to make decisions quickly. (Keri and Carol 2013)
The author also claims that their study is not the only study to find hierarchy in virtual