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Risk Mitigation in Virtual Organizations

Author

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  • Martha Grabowski

    (Business Department, Le Moyne College, Syracuse, New York 13214 and Department of Decision Sciences and Engineering Systems, Rensselaer Polytechnic Institute, CII 5213 110 8th Street, Troy, New York 12180-3590)

  • Karlene H. Roberts

    (Haas School of Business, University of California, Berkeley, Berkeley, California 94720)

Abstract

This paper examines the problem of risk mitigation in virtual organizations (VOs). We begin by discussing risk propensity in virtual organizations, and draw on a variety of research to suggest processes important in obtaining high levels of reliable performance in VOs. From this research we identify four processes we think are important: organizational structuring and design, communication, culture, and trust. Based on existing research done in conventional and high reliability organizations (HROs), we suggest how these processes may enhance reliability in VOs. We discuss how thoughtful management of these attributes can mitigate risk, and conclude with a theoretical and research agenda for future work.

Suggested Citation

  • Martha Grabowski & Karlene H. Roberts, 1999. "Risk Mitigation in Virtual Organizations," Organization Science, INFORMS, vol. 10(6), pages 704-721, December.
    • Handle: RePEc:inm:ororsc:v:10:y:1999:i:6:p:704-721
    DOI: 10.1287/orsc.10.6.704
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    File URL: http://dx.doi.org/10.1287/orsc.10.6.704
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jiaxin Wang & Shaohan Cai & Qinghong Xie & Lili Chen, 2022. "The influence of community engagement on seller opportunistic behaviors in e-commerce platform," Electronic Commerce Research, Springer, vol. 22(4), pages 1377-1405, December.
    2. Sirkka L. Jarvenpaa & Thomas R. Shaw & D. Sandy Staples, 2004. "Toward Contextualized Theories of Trust: The Role of Trust in Global Virtual Teams," Information Systems Research, INFORMS, vol. 15(3), pages 250-267, September.
    3. Samer Faraj & Yan Xiao, 2006. "Coordination in Fast-Response Organizations," Management Science, INFORMS, vol. 52(8), pages 1155-1169, August.
    4. Sandro Mendonca & Miguel Pina e Cunha & Jari Kaivo-oja & Frank Ruff, 2003. "Wild cards, weak signals and organizational improvisation," Nova SBE Working Paper Series wp432, Universidade Nova de Lisboa, Nova School of Business and Economics.
    5. Dumitrascu-Baldau Iulia & Capatina Alexandru, 2020. "Risk Management in International Projects with Teams in the Virtual Environment – Literature Review," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 66-78.

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