Process Virtualization Theory and the Impact of Information Technology

In our increasingly virtual society, more and more processes that have traditionally been conducted via physical mechanisms are being conducted virtually. This phenomenon of “process virtualization” is happening in many contexts, including formal education (via distance learning), shopping (via electronic commerce), and friendship development (via social networking sites and virtual worlds). However, some processes are more amenable to virtualization than others. For example, distance learning seems to work better for some educational processes than others, and electronic commerce has worked well for some shopping processes but not for others. These observations motivate the central question posed in this paper: What factors affect the “virtualizability” of a process? This question is becoming increasingly important as advances in information technology create the potential for society to virtualize more and more processes. To provide a general theoretical basis for investigating this question, this paper proposes “process virtualization theory,” which includes four main constructs (sensory requirements, relationship requirements, synchronism requirements, and identification and control requirements) that affect whether a process is amenable or resistant to being conducted virtually. Recognizing that processes can be virtualized with or without the use of information technology, this paper makes explicit the theoretical significance of information technology in process virtualization by discussing the moderating effects of representation, reach, and monitoring capability. This helps explain how advances in information technology are enabling a new generation of virtual processes.