- An exploratory study on what challenges teams face in a virtual setting.
Master’s Thesis 30 credits
Department of Business Studies Uppsala University
Spring Semester of 2018
Date of Submission: 2018-05-29
Patrik Blomqvist Oscar Nordstrand
Supervisor: Cecilia Pahlberg
Abstract(
Research Aim: The aim of this study is to identify specific challenges impeding effective communication in a Global Virtual Team (GVT) operating in the energy sector.
Research Method: This study uses a qualitative method, focusing on a single case study at the energy company Uniper. Data was obtained through 21 semi-structured face-to-face interviews.
Results: Despite considerable developments in Information Communication Technology (ICT) over the last three decades, GVT still faces multiple communication challenges. Geographically dispersed teams are struggling to create team coherence and team efficiency. GVT needs additional attention from both corporations and academics in order for companies to successfully implement and reap the benefits of their virtual operations.
Research limitations: A multiple case study approach which compares several corporations would be of interest. By extending the research scope, communication challenges can be better understood and awareness of how obstacles can be addressed will be improved.
Practical implications: The presented findings acknowledge the existing challenges facing teams which operate in a virtual setting. This will allow corporations to be more aware of GVT challenges whilst minimizing or eliminating existing GVT challenges.
Originality: This research aims to complement existing research focusing on extending knowledge about still existing GVT communication challenges.
Keywords: Global Virtual Team, GVT, Virtual Communication, ICT, Technology, Interpersonal Relations, Trust, Culture, Leadership.
Acknowledgements(
It is with the outmost sincere and tremendous gratitude we would like to thank all the people who have participated, supported and contributed to our Master thesis during the Spring of 2018. We would further like to bring forward our participants to our study at Uniper Procurement in Malmö, Sweden and Düsseldorf, Germany for their contribution.
Furthermore, we would like to show our appreciation to our exceptionally and compassionate supervisor, Mrs. Cecilia Pahlberg for her valuable and constructive feedback during the development of this research paper. Further, we would like to give a special thanks to our opponent group, Mr. Johan Sundell and Ms. Linn Evangelisti for their tremendous guidance and valuable insights throughout this paper, also, all peers giving feedback throughout our seminars during the semester.
With this thesis, we end our academic career and now we look forward to face new challenges as Alumni’s from Uppsala University, Department of Business Studies.
Uppsala University, May 29th 2018
Patrik Blomqvist Oscar Nordstrand
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ABSTRACT( ( ( ( ( ( (((((((((((((((((((((
ACKNOWLEDGEMENTS( ( ( ( (((((((((((((((((((((((((((((((((((((((((((((((((((((
1.(INTRODUCTION& 1&
1.1(RESEARCH(BACKGROUND& 1(
1.2(RESEARCH(PROBLEM& 2(
1.3(RESEARCH(AIM( 4(
1.4(RESEARCH(QUESTION( 5(
1.5(INTRODUCTION(TO(CASE(COMPANY(–(UNIPER(( 5(
2.(LITERATURE(REVIEW& 6&
2.1(GLOBAL(VIRTUAL(TEAM( 6(
(((((2.1.1(WHAT(IS(A(GLOBAL(VIRTUAL(TEAM?( 6(
(((((2.1.2(GEOGRAPHICAL(DISTANCE(IN(GVT( 7(
2.2(COMMUNICATION(IN(GVT( 8(
2.3(COMMUNICATION(CHALLENGES(IN(GVT( 9(
(((((2.3.1(TECHNOLOGY(IN(GVT( 9(
(((((2.3.2(INTERPERSONAL(RELATIONS(IN(GVT( 10(
(((((2.3.3(TRUST(IN(GVT( 11(
(((((2.3.4(CULTURE(IN(GVT( 12(
(((((2.3.5(LEADERSHIP(IN(GVT( 14(
2.4(THEORETICAL(FRAMEWORK( 15(
3.(METHOD& 17&
3.1(RESEARCH(DESIGN( 17(
(((((3.1.1(ABDUCTIVE(APPROACH( 17(
(((((3.1.2(QUALITATIVE(RESEARCH( 17(
(((((3.1.3(EXPLORATORY(RESEARCH( 18(
3.2(DATA(COLLECTION( 18(
(((((3.2.1(SEMIVSTRUCTURED(INTERVIEWS( 18(
(((((3.2.2(OBSERVATIONS( 19(
(((((3.2.3(SINGLE(CASE(STUDY( 20(
(((((3.2.4(SELECTION(OF(RESPONDENTS( 21(
(((((3.2.5(INTERVIEW(GUIDE( 22(
(((((3.2.6(DATA(PROCESSING( 24(
3.3(ETHICAL(CONSIDERATIONS( 25(
(((((3.3.1(NONVDISCLOSURE(AGREEMENT( 25(
(((((3.3.2(TRUSTWORTHINESS(AND(AUTHENTICITY( 26(
4.(EMPIRICAL(FINDINGS(AND(ANALYSIS& 28&
4.1(GVT(AT(UNIPER( 28(
4.2(TECHNOLOGY(IN(GVT( 28(
4.2.1(ANALYSIS(OF(TECHNOLOGY(IN(GVT( 30(
4.3(INTERPERSONAL(RELATIONS(IN(GVT( 31(
4.3.1(ANALYSIS(OF(INTERPERSONAL(RELATIONS(IN(GVT( 32(
4.4(TRUST(IN(GVT( 34(
4.4.1(ANALYSIS(OF(TRUST(IN(GVT( 36(
4.5(CULTURE(IN(GVT( 37(
4.5.1(ANALYSIS(OF(CULTURE(IN(GVT( 38(
(
4.6(LEADERSHIP(IN(GVT( 39(
4.6.1(ANALYSIS(OF(LEADERSHIP(IN(GVT( 41(
5.((DISCUSSION& 44&
5.1(THE(UPDATED(THEORETICAL(MODEL( 47(
6.(CONCLUSION& 49&
6.1(CONCLUDING(REMARKS( 49(
6.2(RESEARCH(LIMITATIONS( 50(
6.3(RESEARCH(CONTRIBUTION(( 50(
6.4(FUTURE(RESEARCH( 51(
7.(REFERENCE(LIST& &
APPENDICES( (
(
APPENDIX(1:(INTERVIEW(GUIDE( (
APPENDIX(2:(INTERVIEW(QUESTION( (
APPENDIX(3:(THEMATIC(ANALYSIS(( (
LIST(OF(FIGURES& &
FIGURE(1:(THE(THEORETICAL(FRAMEWORK(BASED(ON(DAIM(ET(AL.((2012)(( 16(
FIGURE(2:(UPDATED(THEORETICAL(FRAMEWORK(( 48(
(
LIST(OF(TABLES& (
(
TABLE(1:(RESPONDENT(SUMMARY(( 22(
TABLE(2:(OPERATIONALIZATION(OF(THEORETICAL(FRAMEWORK(( 23(
TABLE(3:(EXAMPLE(OF(THEMATIC(ANALYSIS(( 25
( (
( (
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1. Introduction
The first chapter will introduce the background, followed by the identified research problem related to communication challenges in Global Virtual Teams. The chapter will then present the aim of the study, followed by the research question to be answered throughout the paper. The chapter will end by a presentation of the case company.
1.1(Research(Background(
(
Over the last 30 years, multinational corporations (MNC) have become more globally integrated and therefore increasingly geographically dispersed (Cornett, Karlsson &
Wallin 2018; Forsgren 2013; Powell, 2017). Multiple scholars agree that the phenomenon of globalization has evolved due to the technological progress which has taken place over the past few decades; technology is seen as a key enabler of globalization (Baldwin, 2016; BCG, 2016; Montagna, 2017). Berisha-Shaqiri (2015) stresses how the technological revolution has and will continue to change the way corporations operate.
This has resulted in the reshaping of industries, forcing corporations to master the technological developments which have redefined the competitive landscape (McKinsey, 2018). ICT has prevailed in the modern era, giving rise to vast possibilities, as well as creating new challenges for corporations to overcome (Deloitte, 2018).
Valacich and Schneider (2017) claim that globalization, aided by technology, is the integration and development of economies throughout the modern world as enabled by ICT. By implementing ICT in their organizations, corporations can adapt to a new landscape of business operations that can drastically improve their virtual communication capabilities (Maduka et al., 2018; McKinsey, 2018). Corporations can enable ICT for improved communication throughout the whole organization, putting together global teams and reducing time to market changes, enabling them to respond to dynamic threats as they occur (Batarseh, Daspit & Usher, 2017; Maduka et al., 2018; Welch, 2014).
McKinsey (2018) notes that 80% of global executives in MNCs highlight the importance of ICT as it enables team collaboration and strengthens global business operations. By simplifying business operations through the provision of efficient communication tools, corporations can establish connectivity within global organizations (BCG, 2016;
Christensen & Kowalczyk, 2017).
As a result of ICT advances improving organizational communication, global connectivity has flourished. Scholars have described how approximately 60% of MNC employees spend one day or more working in a virtual setting (Laitinen & Valo 2018;
Maduka et al., 2018). This figure is predicted to increase over the coming decades, rising to approximately 1.3 billion people working in a virtual context (Zuofa & Ochieng, 2017). Due to the explosion of ICT use and sophistication in the last three decades, traveling to meet face-to-face is now rare due to its multiple disadvantages, including time, financial costs and environmental impact. The sophistication of ICT enables teams to function without a need for geographical proximity
As a result of these developments, the phenomena of Global Virtual Teams (GVT) have received increased attention from both academics and MNCs. A GVT has been described as an evolutionary group of people who rarely meet face-to-face, and yet work interdependently and have day-to-day contact via ICT (Maduka et al., 2018). GVTs are now an integrated and important part of today's business operations; however, there are still multiple challenges for MNCs to overcome in order to remain competitive; hence the importance of ICT and virtual communication within global business operations.
1.2(Research(Problem(
(
ICT is argued to enable easier, faster and more cost efficient ways of establishing connectivity across business operations (Martinic, Fertalj & Kalpic, 2012). By using effective virtual communication, GVT operations could enhance team collaboration and team efficiency (Marlow, Lacerenza & Salas, 2017). Using GVT allows faster and shared decision-making processes and adaption to dynamic market changes, whilst simultaneously improving business operations (Valacich & Schneider, 2017). Although the significance of GVT communication is well known, questions remain regarding functionality and efficiency in the virtual context in which corporations face multiple communication challenges (Marlow et al., 2018). Since communication is executed virtually in GVTs, a lack of human interaction and face-to-face communication is a given. Scholars therefore maintain that ICT is the core pillar of a successful GVT (Wildman & Griffith, 2015). Batarseh, Daspit and Usher (2017) highlight that only 18%
of all GVTs achieve communicative success. Deloitte (2018) demonstrates the complexity of GVTs by presenting an executive report in which 1600 executives describe
how ICT offers huge opportunities to corporations, while also presenting many challenges and a great deal of uncertainty. One cause of GVT complexity is the lack of a best practice, with no one-size-fits-all type of concept applicable to complex situations (McKinsey, 2015). Corporations are still in the early stages of implementing ICT; gaining insights into the challenges of GVTs is therefore of crucial importance.
An industry that has received vast amounts of interest in the last few decades is the energy sector (McKinsey, 2017). Energy consumption is predicted to double by the year 2050; concerns about global energy consumption have increased among general society as well as among scholars (World Energy Statistics, 2017). Moreover, the energy market is characterized by unpredictability, as well as market instability and fluctuations (Seo &
Chae, 2016) due to rapid technological developments over the last few decades. Rapidly changing customer preferences due to the global accessibility of better, cheaper and more environmentally friendly energy sources require corporations to quickly react to market changes in which investments in ICT is argued crucial (Han et al., 2017; McKinsey, 2017).
The energy sector is characterized by digital development and substantial investments which impact the highly volatile market structure (Bain & Company, 2017). Modern technology helps to bring down costs and increase the availability of energy sources. The implementation of ICT in the energy sector is predicted to decrease corporate expenses by approximately $1.100 billions in total by the year 2035 and simultaneously increase productivity by nearly 40% (Morgan Stanley, 2017). According to the IEA (2017), in 2017, total investment within the energy sector reached $1.700 billion worldwide, which accounted for 2.2% of the global GDP. Based upon these substantial investments and the dynamic fluctuations which characterize the sector, MNCs operating within the energy sector need to think beyond the classic industry definition of producing, storing and distributing domestic energy, as well as expand their focus beyond domestic markets (Bain & Company, 2017). Global energy corporations are required to focus on global demand and shifting customer preferences facilitated by implementing ICT tools.
Coming to decisions regarding substantial investments in ICT includes a high degree of risk (Haas et al., 2011). Nonetheless, it is a vital issue that needs to be faced by modern organizations and MNCs when organizing their global operations and creating global
connectivity (Valacich & Schneider, 2017) with central information, transparent structures and distributed by reliable technological instruments (EY, 2015).
The concept of ICT has been analyzed within the field of information sharing from a meta-perspective (Marlow et al., 2018). Surprisingly, previous research into the overall communication challenges which create obstacles for teams when establishing efficient GVT communication is lacking (ibid.). Instead, previous research has centered around a macroeconomic perspective, which has focused on the role of communication technology in promoting economic development (Altschuller & Benbunan-Fich, 2010). Chang, Chuang and Chao (2011) highlight the importance of investigating virtual communication in multiple settings and further, gaining a deeper understanding of the factors which obstruct efficient GVT communication. Existing research has been updated, with modern scholars pointing to a present research gap which is due to the inconsistency of findings, and the multiple factors still challenging GVT communication (Marlow et al., 2018).
Hence, in concurrence with Marlow et al. (2018), this study advocates the importance of investigating GVT communication challenges within the energy sector.
1.3(Research(Aims(
Virtual communication is argued to be a crucial factor for firm competitiveness on a global scale, allowing interaction across businesses’ operations regardless of geographical location. GVT communication is complex due to multiple factors and Daim et al. (2012) name the following key challenges to efficient GVT communication:
Technology, Interpersonal Relations, Trust, Culture and Leadership. Given the high importance of having efficient communication in global operations and in GVT, our aim is to investigate what communication challenges GVTs face in a virtual setting.
We intend to address the research question using a qualitative method, conducting semi- structured interviews with employees from the case company Uniper, an MNC operating in the energy sector. Interviews were conducted at the German HQ and the Swedish subsidiary, with interviewees with both managerial and non-managerial experience. All interviewees had diverse international backgrounds, and had experience in operating in GVTs and using virtual communication in day-to-day operations.
1.4(Research(Question(
To address the aim of this study and gain further knowledge which can be beneficial to both academics and practitioners, the following research question is of interest to answer:
- Which factors challenge efficient communication for Global Virtual Teams operating in the energy sector?
1.5(Introduction(to(Case(Company(–(Uniper((
Uniper was founded in 2016 when it split from its previous parent company, E.ON (Uniper, 2016). Uniper is now an industry leading MNC active in more than 40 countries, with approximately 12,600 employees around the world and an annual turnover of approximately €67 billion (Uniper, 2017). Due to the size of Uniper and its multiple business operations, the company makes use of GVTs to efficiently communicate across borders. Uniper is one of the largest energy traders in Europe, both selling and buying a broad scope of energy sources from a worldwide market (Uniper, 2016). The company provides both B2Bs and B2Cs with products such as natural gas, electricity, hard coal, liquefied natural gas, and fossil fuels etc. (Uniper, 2016).
Uniper is a modern energy supply company, offering both extensive technical and commercial expertise to its customers (Uniper, 2016). Uniper further aims to deliver reliable, competitively priced energy to all parties involved, whether customers or suppliers, with a combination of high precision and speed. With over a century’s worth of expertise, Uniper has an extensive business network which includes experts from all over the world, with a broad range of engineering and technical expertise (ibid.). Uniper defines itself as a “one-stop-shop”, providing a holistic approach to customers, supporting the complete supply chain to ensure a positive result by reducing risk and cost, and at the same time delivering state of the art performance.
This study’s data was obtained through conducting 21 face-to-face interviews with employees at the Uniper Procurement division located in Dusseldorf, Germany (the HQ) and its subsidiary in Malmö, Sweden.
2.(Literature(Review(
This section presents the theoretical framework to provide the reader with further knowledge and concepts valid for this research. The chapter portrays the theory of GVT in relation to GVT communication challenges. The chapter ends with an illustration of the theoretical framework, interconnecting the presented concepts into a figure.
2.1(Global(Virtual(Team((
2.1.1(What(is(a(Global(Virtual(Team?
(
Multiple scholars reason there are numerous definitions of GVT due to its evolution among several industries (Carter et al., 2014; Deloitte, 2018). Wildman and Griffin (2015) define GVT as “..An interdependent virtual team whose members are geographically and time-dispersed across cultural and national boundaries” (p. 14). The phenomenon of GVT has become more and more integrated into corporate structure due to increased globalization and advancements in ICT (Castellano, Davidson and Khelladi, 2016).
Scholars claim an increased number of corporations have shifted its operations into a virtual setting to face new demands and saving costs (Alsharo, Gregg & Ramirez, 2017).
GVT consist of a group of people exploiting technology to establish connectivity and identify themselves within a virtual business unit or team (Castellano, Davidson &
Khelladi, 2016; Carter et al.,(2014; Maduka et al.,(2018; Valacich & Schneider, 2017). A GVT consists of individuals working independently towards a shared goal, whilst operating geographically dispersed, regardless of time and space (Batarseh, Daspit &
Usher, 2017). This enable team member to work simultaneously on the same project assignments without the need of proximity, which leads to increased competitiveness and efficiency (Zuofa & Ochieng, 2017.) GVT could be composed on a temporary or permanent basis, assigned to accomplish strategically important tasks (Castellano, Davidson & Khelladi, 2016).
Historically, GVT was established during the 1990´s as a way for corporations to globally establish connectivity on several markets and to stay competitive (Alsharo, Gregg &
Ramirez, 2017). Earlier corporations used various task units, composed in temporary project groups, with a defined target and a limited project life cycle to solve various problems (Valacich & Schneider, 2017). These virtual teams were established with the
ICT revolution when traditional structures failed to solve global targets (Binder, 2009).
GVT is considered to be an extension of “Virtual Teams”, previously stated due to the Global geographical dispersion among team members (Castellano, Davidson & Khelladi, 2016). Benefits of integrating GVT are argued multiple. GVT enables expertise and know-hows to rapidly response to dynamic fluctuations in a global market. Hence, argued benefits for the corporations using GVT are e.g. cost saving, increased productivity, market connectivity and access to global talent and knowledge (ibid.).
Even though GVT provide a range of advantages improving organizational operations, challenges exist applying virtual communication in a global setting. Only 18 % of GVT have achieved communicative success, declared with multiple explanations rooted to the complexity of establish efficient GVT communication (Batarseh, Daspit & Usher, 2017;
Magnier-Watanabe et al., 2017).
2.1.2(Geographical(Distance(in(GVT(
Collaboration plays a crucial part in team success (Batarseh, Daspit & Usher, 2017).
Efficient collaboration in teams can develop benefits for corporations, such as knowledge sharing, a supportive culture and a willingness to share risk and rewards among team members. Castellano, Davidson and Khelladi, (2016) claim a lack of physical interaction decreases team collaboration. Bailey (2013) aligns a lack of face-to-face communication to be considered one main obstruction of virtual collaboration. As geographical distance is significant for GVT, the level of commitment and engagement in team collaboration could be limited (Zuofa & Ochieng, 2017). One explanation for this could be described by the lack of occasions for GVT members interact in a non-work related context, as these group activities tend to favor team collaboration. Daim et al. (2012) highlights the importance of team commitment and engagement in GVT. By sharing ideas and knowledge openly and frequently between members, corporations can solve problems and increase team efficiency.
Another aspect for corporations using GVT is to raise awareness of benefits and challenges related to time zone differences due to geographical dispersion (Nedrick et al., 2014). Working in different time zones could be beneficial for GVT because group members can operate 24 hours per day (Castellano, Davidson & Khelladi, 2016). In contradiction, working in different time zones limit GVT to synchronize internal
communication, which could lead to inefficient communication and collaboration (Zuofa
& Ochieng, 2017). Working in different time zone could be a challenge for GVT when deadlines are critical and members are unavailable as a direct response to geographical spread among group members. Marlow et al. (2018) describe how connectivity generates capacity to coordinate activities and resources across corporations, no matter of geographical spread.
2.2 Communication in GVT
Communication is fundamental for all types of interaction and present in both face-to- face and virtual conversations (Allwood, 2013). There are multiple definitions of communication as the concept is perceived and executed differently among individuals in various settings (Daim et al.,( 2012). Valacich and Schneider (2017) focuses the importance efficient communication has on team performance as a basis for collaboration. To provide a further understanding, this study interpret communication in line with Tosi and Pilati (2011) definition “..Communication is the process by which meaning is exchanged between individuals through a common system of symbols, signs or behavior “ (p. 241). Communication is based on the interaction between individuals.
However, communication is interpreted differently by individuals, not always through a common or general understanding (Allwood, 2013). Communication is therefore complex due to the subject interpretation and is hard to predict as it involves critical factors impacting communication. Marlow et al., (2018) describe communication to be dependent on the communication quality, which is argued to be; clear, effective, complete, fluent and on time.
To deeper comprehend the critical factors of communication and how these affect communication quality, pre-knowledge about the context itself is crucial (Collins, 2013).
Knowledge can be separated into tacit and explicit knowledge. Tacit knowledge is the information that can not be communicated through directions and manuals, instead, learning by doing is applicable (Johannessen et al., 2001). Tacit knowledge is learned from experiences and is claimed to be complex to communicate and replicate in dynamic contexts. In comparison, explicit knowledge is described as information the user can interpret and understand from a theory basis (Collins, 2013). Explicit knowledge usually occurs in organizations as a direct response of provided routines and material received
from the corporation. Grant (1996) claim tacit knowledge to be one of the most important sources of corporate value. The created value within organizations are crucial to be communicated to all parties to establish competitive advantages, although its complexity in being learned and communicated throughout the corporation (Hardin, Fuller &
Davison, 2007).
ICT has experienced a transition regarding how information can improve GVT operations and is now seen as one core foundation of global operations (Marlow, Lacerenza & Salas, 2017). The rapid transition of technology impacts MNC using communication tools and how it is implemented into global business operations (Castellano, Davidson & Khelladi, 2016). Laitinen and Valo (2018) describe adoption of ICT enables corporations to practice different communication channels sharing content. Sharing content simplifies collaboration as it unleashes creativity due to the access of mutual knowledge. Valacich and Schneider (2017) argue positive aspects for corporations implementing ICT are faster decision processes and lower traveling costs, further being one key driver of business growth (World Economic Forum, 2016). One example is Hewlett-Packard (HP) that implemented ICT in Argentina and Korea, leading to increased efficiency and reduced costs by $1.000.000 using tools e.g. Skype, Lync etc. (Magnier-Watanabe et al., 2017).
2.3(Communication(Challenges(in(GVT
2.3.1(Technology(in(GVT(
The ICT revolution and the increased implementation of GVT have resulted in a new range of unique challenges for corporations to handle (Eisenberg & Mattarelli, 2017). In line, several GVT challenges related to virtual communication have appeared for corporations to handle. Daim et al. (2012) has created a framework for analysis used to illustrate the communication challenges in GVT. This framework presents five challenges for communication in a virtual context namely: Technology, Interpersonal Relations, Trust, Leadership and Cultural Differences.
Daim et al. (2012) describes the importance of technology in GVT: “Without Internet, email, video conference and audio bridges, [global] virtual teams can't even exist” (p.
200). Due to the lack of face-to-face communication in GVT, these teams fully rely on virtual communication and a solid technological infrastructure is therefore of crucial
importance for GVT (Kankanhalli, Tan & Wei, 2014). As innovations constantly develop, corporations are moving from traditional ways of communicating towards new trends such as mobile & social media platforms, cloud based computing, artificial intelligence and big data structures (PwC, 2018.). Therefore, technology is an ever- changing complexity for any corporation to possess but simultaneously a supporting foundation for MNC operating on a global scale. The importance of having modern technology is motivated to increase efficiency in the business operations and improves communication (ibid.). However, technological investments are for most corporations a large, complex and costly decision (Valacich & Schneider, 2017). Not only can one system support one full operation, but also associated costs with purchasing software, licenses, installation and maintenance are heavy. Hence, an up to date technological infrastructure is essential to remain competitive and is a vital part in doing successful business in the 21st century (ibid.).
Daim et al. (2012) argue a common negative experience for members in GVT is technological failure. This could be e.g. delayed or failing audio or video signals.
Resulting in group members not capturing the context, causing disruption in communication and thereby creating disturbances between sender and receiver. Failures in virtual communication can result in misunderstandings, limit team communication and overall decreased team productivity (Sallnäs, 2005). Further negative obstacles of practice ICT are decreased human interaction and social isolation. Virtual communication is argued to have a negative impact in which people tend to speak fewer words in virtual contexts e.g. videoconference etc. And people that use instant messages like Lync or Skype or emails also tend to write less words than in spoken face-to-face conversations (ibid.). According to a survey by RW Culture Wizard (2016) 92 % argue face-to-face communication to be the most effective form of communication. In comparison, internal and external social media tools for communication, such as instant messages or email, only score 49 % on average providing an effective output. (
2.3.2(Interpersonal(Relations(in(GVT(
Another aspect of communication challenges for GVT is interpersonal relations. This is referred to the complexity of creating a relationship and establishing collaboration within a GVT (Daim et al., 2012). Interpersonal relations in GVT include differences in group- compositions, individual background and traits which are differences impacting the
creation of team collaboration. Hertel, Geister & Konradt (2005) therefore highlights the importance of being aware of our subjective differences as humans, as it could effect team collaboration and productivity if managed and understood properly in the GVT.
Harzing et al. (2011) claim language differences to be one aspect that tend to complicate and slow down decision-making processes and affect the interpersonal relation with a GVT. Klintmøller and Lauring (2013) describe a common language to be a facilitator when knowledge sharing within GVT, although hard to achieve. The English language is argued to be one of the most frequently and shared corporate languages in most MNCs, in which the linguistic prerequisite of the individuals are a crucial factor to share and comprehend information. The linguistic preferences include aspects of grammar, spelling, and words etc. which all are vital factors when speak, reading and transferring information in a proficient way (ibid.). Communication is required to be clear, effective, complete, fluent and on time to be practiced, which can be complex to achieve if one of the requirements are not fulfilled (Marlow et al., 2018).
In virtual settings, the non-verbal communication including gestures, facial expression and body language etc. is argued to be hard to interpret and capture, compared to face-to- face communication. This can obstruct or result in disruptions of the information and create possible misunderstandings among team members (Wang, 2009). Daim et al.
(2012) further explain limited successful communication and misinterpretations could lead to confusion and decreased team performance due to miscommunication among team members.
2.3.3(Trust(in(GVT
Concerns regarding the creation of trust in GVT have increased (Alsharo, Gregg &
Ramirez, 2017) as scholars argue efficient communication to be closely linked with trust.
Efficient communication is argued to be one core of establish, maintaining and creating trust and team collaboration in virtual settings (Kelly, 2013). Trust is therefore argued to be a vital factor for creating good virtual business operations. Trust is interconnected with creating personal relationships, which is to be improved through continuous interactions between individuals over time (Soetanto, 2012). Trust is therefore an essential factor as it chains the connectivity among team members virtually and is therefore argued to be harder to establish (Zuofa & Ochieng, 2017). Alsharo, Gregg and Ramirez (2017) claim
trust to be crucial for creating and maintaining relationships, supporting teamwork and collaboration. Moreover, trust is described to be a fundamental element in projects and an important factor for team collaboration and successful team performance (Zuofa &
Ochieng, 2017; Soetanto, 2012). Batarseh, Daspit and Usher (2017) further argue teams that fail to establish trust are teams unable to harvest the benefits of their business operations. Teams operating in a virtual setting are therefore required to fully trust its team members to successfully perform. Given this importance, establishing trust is argued to be one great challenge for GVT (Marlow, Lacerenza & Salas, 2017).
The importance of face-to-face communication for building trust in GVT is excessive (Alsharo, Gregg & Ramirez, 2017). In virtual communication, dispersed members are unable to observe physical behaviors and cues, which can impact the establishment of trust. The lack of face-to-face communication imply difficulties in achieving correspondence and the assistance of maintaining relationships (Daim et al.,(2012). This is mainly a response to the virtual and the complexity to assess trustworthiness (Alsharo, Gregg, Ramirez, 2017). Scholars reason teams with lack of trust, are teams that tend to be characterized with more conflicts and inefficiency compared to teams with a high degree of trust (Soetanto, 2012).
In teams characterized by diversity, the opinions about trust are subjective. For instance, trust in some cultures is assumed, while in others, trust is something being earned.
Therefore, GVT are required to constantly work with maintaining and establishing trust as it can be lost quickly if managed poorly (RW Culture Wizard, 2016). Moreover, every team is unique and requires a different approach to maintain and establish trust to generate a positive outcome.
2.3.4(Culture(in(GVT(
Culture is a term related to expectations and differences founded in beliefs, core values, rituals, customs etc. all of which aims to give a logical reason and describe our differences as humans (Klintmøller & Lauring, 2013). Since culture is such a wide expression including several aspects, cultural awareness is not to foresee the importance of its influence on group cohesion and collaboration (Hofstede, 2011). Culture is a complex phenomenon to perfectly define in a general and accepted term since it is subjective (Chapman et al.,( 2008.). However, this study has used Hofstede (2011)
definition of culture: “..The collective programming of the mind which distinguishes the members of one group or society from those of another” (p.3).
Most GVT operating on a global market includes several cultural boundaries due to the cultural differences among the members in the dispersed teams (Eisenberg & Mattarelli, 2017). Combining people from various parts of the world with dissimilar cultural backgrounds involves complexity in regards to how communication is interpreted and executed. Daim et al. (2012) describe culture to be divided into three sections of cultural differences. Functional differences, describe how individuals perceive motivational factors differently. For instance, individuals coming from diverse cultural backgrounds have divided motivational triggers which can result in complexity within a virtual team as members have a split view on how to function (ibid.). Secondly, organizational differences are challenges impacting on behavior adopted from experience according to the organizational culture as it makes a great impact of the employees’ behavior and values. At last, national differences impact the individuals’ behavior rooted from their own culture. This can be challenging in a GVT context as team members tend to identify themselves in a mutual identity, which could segregate the GVT (ibid.). GVT members feel associated with similar cultures, whilst members from distant cultures are being left out which results in difficulties in establishing a united team culture.
GVT with different cultures have obstacles of fully reaching the expected, or full potential in terms of performance and team-efficiency (Hardin, Fuller & Davison, 2007).
Marlow et al. (2018) highlights cultural challenges to be a major constraint for GVT performance. The progress of ICT is argued to simplify the communication among geographically and culturally dispersed teams. (Hardin, Fuller & Davison, 2007).
However, challenges related to cultural aspects, describing basic dissimilarities among individuals remains due to our differences as individuals (Klintmøller & Lauring, 2013).
GVT members are required to identify cultural aspects, enabling a more open and global connected thinking, not confined to national borders (Eisenberg & Mattarelli, 2017).
Zander et al. (2012) describe corporations operating in an international context to be required to take culture into consideration. Chapman et al. (2008) discuss how lack of cultural awareness gives an incomplete understanding, being devastating for cross- cultural team performance in international management (Drogendijk & Zander, 2010).
Members of GVT are therefore required to understand the value and significance of cultural awareness as it has a direct impact on team performance (Eisenberg & Mattarelli, 2017). Lockwood (2015) support by claiming that superior outcome could be achieved when combining qualities with cultural understanding in a GVT setting.
Another challenge is the fallacious assumption of cultural homogeneity within nations (Tung, 2008). In alliance, Signorini et al. (2009) and Kirkman, Lowe and Gibson (2006) argue culture homogeneity to be non-existing, rather to be dynamic and thereby changing over time, indicating a complexity of assuming one existing national culture.
2.3.5 Leadership in GVT
Another challenge for GVT is the role of the executed leadership (Daim et al., 2012).
Northouse (2013) describes how the leadership attributes have changed the last decades due to globalization and the increased focus of cultural awareness. Hertel, Geister and Konradt (2005) explain leadership to be complicated in GVT as the leader and employees are often operating in disperse locations, explaining the complexity regarding control and coordination of team members. By operating on distance, scholars claim GVT to have a less hierarchal structure, which cause role confusion and team disengagement. The lack of managerial presence in teams could result in a lower degree of motivation, trust and target achievement (Hoch & Kozlowski, 2014). Gordon (2017) claim virtual teams face more leadership challenges than local teams. This indicate leaders are required to attain more attention to the virtual team members which challenge the leader to allocate both time and effort in an already complicated and pressured circumstance (ibid.). Another challenge is described to be the lack of information between the leader and team members to result in a negative interaction. Members of GVT could perceive they receive the minimum amount of information, creating tensions and impact the output of team collaboration (ibid.).
Virtual leaders are required to possess a diverse set of skills such as leadership attributes, system and technological skills and conflict management (Valacich & Schneider, 2017).
Leadership attributes in GVT are related to leaders’ ability to attain cultural intelligence in an international organization, which describe the leaders’ capability to effectively deal with cultural diverse settings (Eisenberg & Mattarelli, 2017; Lisak & Erez, 2015).
Chapman et al. (2008) debate the need for increased understanding of cultural
differences, in which they state “..Cultural differences which are understood, are differences which can be managed” (p.218). RW Culture Wizard (2016) describe leaders are required to possess cultural awareness, having different traits and understand cultural differences within GVT (Northouse, 2013). Leaders in a global team are required to possess chameleon-like characteristics to deal with diversity within teams to understand different individuals (Lisak & Erez, 2015). Transparency and dependability are traits argued to be essential as uncertainty in virtual settings are more present than in a local setting (Lockwood, 2015). Aktas et al. (2015) present leadership traits are affected and formed by social and organizational characteristics, which argue social norms are embedded and influencing effective leadership. Being adoptable to communicate with other cultures and learning about other culture from a position of equality, rather than cultural superiority is crucial (Northouse, 2013).
Eisenberg and Mattarelli (2017) describe cultural intelligent managers to establish collaboration and trust in virtual teams. Leaders and teams could favor the creation of trust by ensuring members to join the business operations and work cohesively towards the same targets, creating a transcultural vision. Meaning, by training communication competences, leaders are enable to implement their vision in diverse workplaces leading to overcome cultural challenges more efficiently (Northouse, 2013). To succeed with a transcultural vision, Zuofa and Ochieng (2017) encourage non-work related interaction to create collaboration and trust in teams. Additionally, this kind of interaction is difficult to execute due to the nature of GVT, yet, prominent for GVT performance (Batarseh, Daspit
& Usher, 2017).
(
2.4(Theoretical(Framework
&We highlight a present research gap in alliance with Marlow et al. (2018) to capture the complexity of GVT communication challenges in a virtual setting. We have therefore decided to investigate if the intended framework based on Daim et al. (2012) still are relevant today due to the rapid and dynamic development of ICT the last years. The stressed importance of understand the GVT communication challenges are still important, but undiscovered (Marlow et al., 2018). Batarseh, Daspit and Usher (2017) describe only 18 % of GVT declare successful team performance and the remaining percent represent the GVT not to fulfill their intended targets due to communication failures.
Based on this understanding, we have chosen to visualize the main concepts in figure 1, developed with influence of Daim et al. (2012). The figure illustrates the five main pillars which affect efficient GVT communication. We intend to illustrate the argued GVT reality from literature by constructing a model in three levels.
The first level in the top (Communication challenges in GVT) describes virtual communication in its original context. Meaning, the level illustrates MNCs using communication in GVT without awareness of the communication challenges hindering their business operations. The second level contains the identified parameters by Daim et al. (2012) of; Technology, Interpersonal Relations, Trust, Culture and Leadership, all of which are claimed to impact GVT communication negatively. The third (Efficient GVT Communication) level is the desired stage where an understanding of the mentioned parameters can be transformed into enablers improving the communication within GVT.
Figure 1. The theoretical framework based on Daim et al. (2012).
3.#Method#
In this section, we present the method chosen for this research study. It is further elaborated and motivated why and how the chosen method was used for this research.
3.1#Research#Design #
3.1.1(Abductive(Approach(
The aim with this study is to investigate what communication challenges a GVT faces when operating in the energy sector. We have chosen an abductive approach to encounter our research aim and research question. We thought the abductive approach was suitable for our study as it is a mix of inductive and deductive research (Patel & Davidsson, 2003). When using the abductive approach, new information can be generated and combined with existing knowledge, in which we could gain a deeper understanding about the existing challenges in GVT communication (Gioia et al., 2012).
3.1.2 Qualitative Research
We found a qualitative approach suitable for our investigation of the communication challenges in GVT. This was motivated because the qualitative approach could increase the understanding of the GVT phenomena based upon our interviewees perception and experience from GVT at the case company. We argue in line with Yin (2003) how qualitative research was suitable for our research as it investigates a comprehensive area to explore a narrative base on a wide-ranging collected material. This approach is used by both scholars and professions from a various discipline to explore and give context to an unveiled area of investigation without utilizing numerical measurement, covering a full scope expressed in words (Cassell & Symon, 2015; Saunders, Lewis & Thornhill, 2009.
By using a qualitative research approach, we could detect broad dynamic patterns and capturing a context dependent reality, which is revealed with a complete interpretation found at the case company (Pettigrew, 1997).
Denscombe (2010) describes qualitative method to be applicable when dealing with multiple explanations of the perceived reality, in which we found qualitative method to facilitate our study (Babin & Zikmund, 2016; Crane et al.,(2018). The main objective of our research was to gain a holistic view whilst simultaneously gaining deep and detailed information about the communication challenges in GVT.
By utilizing a qualitative research method, we could go in depth and find true inner meanings of the research topic.
3.1.3(Exploratory(Research(
As the aim of the study propose to bring forward existing challenges of GVT communication, an exploratory research was found appropriate. Bryman and Bell (2011) describe the exploratory research design to be valuable when investigating a phenomenon in a new angle. We found exploratory research to be suitable for our research as it could investigate new observations about GVT communication, enabling us to be flexible in the research progress (Saunders, Lewis & Thornhill, 2009).
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3.2(Data(Collection
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3.2.1(SemiVstructured(Interviews(
Applying interviews as a research tool is a widely common data collection method when conducting a case study (Saunders, Lewis & Thornhill, 2009). Semi-structured interviews are a sort of interviewing technique, described to be efficient due to its flexibility and capability in disclosing often hidden human and organizational behaviors. We found the approach suitable for our research because we wanted our interviews to result in a
“conversation like” meeting where the interviewees could speak openly with the opportunity to develop the topic unconditionally whilst going in depth. The semi- structured interviews gave us the opportunity to ask follow-up questions when the interview questions were understood unclear or elaborations vague. This approach supported us accessing in-depth information, whilst avoiding biased answers by our interviewees (Bryman & Bell, 2011).
In our research, face-to-face interviews were facilitated in all 21 interviews (Saunders, Lewis & Thornhill, 2009.). We tried to establish a familiar and comfortable environment for our interviewees in both locations, in which we met with the respondents in a conference room at Uniper facilities. We used the case company’s own facilities with private conference rooms to ensure respondents felt safe and protected when elaborating on our questions, contributing to essential and vital data. We made effort to ensure comfort with our presence by having a short introduction about ourselves, the research and the non-disclosure agreement to promote and guarantee our intentions with the research. We made sure to clearly state we were open for potential questions or
clarifications before, during and after the interviews. This to ensure the interviewees full confidence. This is argued to impact the interviewees willingness to disclose knowledge and experience because of trust being established (Saunders, Lewis & Thornhill, 2009).
We decided to travel to two destinations to conduct our empirical data for this study.
First, we travelled to Malmö, Sweden to visit the Swedish subsidiary of Uniper and conduct face-to-face with the interviewees. In Malmö, we conducted 9 interviews with the employees at the procurement division. Secondly, we travelled to Düsseldorf, Germany to visit the procurement division working at the Uniper HQ. In Düsseldorf, we conducted another 12 interviews. In total, we held 21 face-to-face interviews.
The interviews in this study was conducted in both Swedish and English language. We motivate using both languages to gain confidence from the interviewees whilst avoiding limited answers if linguistic problems would create obstacles. The interviews in Sweden were held in Swedish, where we argue the native tongue of the respondent to be used which increase understanding and comfort between us and the interviewees (Saunders, Thornhill & Lewis, 2009). We translated all Swedish interviews into English to use it for our empirical analysis. Further, all interviews held in Düsseldorf were conducted in English to develop a shared consent between us and the interviewees due to the multiple nationalities represented at the HQ. Bryman and Bell (2011) describe interviews to be a time-consuming process because its intention is to explore and gain information of a given context. Each of our interviews in this research were approximately 60 minutes, which is argued to be an appropriate length for gaining a broad understanding (Jacobsen, 2002). In contrary, conducting shorter interviews wouldn’t have provided the required depth, causing problem for the research authenticity and trustworthiness. All 21 semi- structured interview questions were answered within the given time-scope and enabled the interviewees to give a full elaboration about each topic, leaving room for potential clarifications and elaborations by both parties involved.
3.2.2(Observations(
Observations were conducted during the data collection when we had the possibility to participate in virtual meetings and other social contexts with several participants at both Uniper facilities. The observations gave us first-hand information, enabling us to witness the events with our own eyes and ears. This enabled us to extend our interpretations of
communication challenges in a GVT. We motivate our participation during the observations to be suitable for applying a qualitative research (Bryman & Bell, 2011).
Collecting data by being part of observations helped us understood the dynamic GVT setting whilst providing us with a deeper understanding (Denscombe, 2010).
Using participant observations as a data collection tool enabled us as authors to observe same events at the same time. However, if we comprehended the same things are an aspect required to taken into consideration. Background and competence is argued to affect the comprehension due to our selective recall as researchers and individuals (Denscombe, 2010). Furthermore, we took the relevant and precise indicators into consideration, preserving the naturalness of the setting. Meaning, we put effort directly into the indicators related to GVT communication, having no ambiguity into the irrelevant indicators during the observation. Our observations enabled us to go in depth, disguising potential hidden traits by the members participating in the events. Factors related to e.g. culture is argued to be hard to detect, in which observations can reveal the
“truth” of such factors (Denscombe, 2010). The conducted observations provided us to extend the empirical findings and our existing knowledge of GVT communication.
3.2.3(Single(Case(Study(
We used a single case study approach to gain detailed information and provide understanding to describe GVT communication (Ghauri & Grønhaug, 2010). Creswell (2007) presents a case study as a research strategy primary focus on going in depth to investigate and intensively understand the know-how of a specific case or objective (Dyer
& Wilkins, 1991; Eisenhardt, 1989). Babin and Zikmund (2016) explain; ”..Case studies provide a primary advantage in that a researcher can study an entire organization or entity in depth with meticulous attention to detail” (p. 120).
Doh (2015) describes importance of going in depth when investigating an organization, location or person, in which we have selected the case company Uniper for our research.
By disclosing the in-depth context of GVT from its primary source, the intended aim of the study was supported. We selected Uniper as case company to provide a narrative of information and further applying theoretical grounds in a real context environment. At Uniper we could gain unique insights of their GVT operations. With this reasoning, we motivate a single case study approach to be suitable for encountering the aim for this
research (Flyvbjerg, 2003; Saunders, Lewis & Thornhill, 2009). However, Langley (2009) discuss the potential risks of utilizing a single case study to be negative in terms of generalizability of the findings on a larger scale. Our research intends to bring generalizable findings to academia and theory and therefore are findings not relevant if removed from original context (Eisenhardt, 1989; Saunders, Lewis & Thornhill, 2009).
To fully understand the multiple challenges of GVT communication, a single case study approach was conducted. This enabled us to go in depth, which is argued to be preferable to gain sufficient and extensive information. In comparison to a multiple case study approach in which we would only have scratched the surface of several corporations.
3.2.4(Selection(of(Respondents(
The sample frame is argued to be small when utilizing a qualitative and exploratory study, yet more extensive in terms of depth (Saunders, Lewis & Thornhill, 2009). The need of cover a large research scope while conducting qualitative research is seen to be a
“less-is-more” concept focusing on gaining deeper knowledge. Our research conducted 21 face-to-face interviews with employees at Uniper. We would like to highlight managerial and non-managerial employees were represented in the sample and we motivate the distribution of our interviewees to consist of a wide range of individuals.
The contribution interviewing a diverse group of people could bring an objective perspective to our research and findings.
Our sample consists of 7 females and 14 male interviewees. All representing a wide spread of nationalities including Sweden, Germany, India, Italy, Spain and the Netherlands. The respondents at the case company are represented in multiple GVT, especially respondents holding management positions at the HQ. An example of held positions by respondents: Vice President, Procurement Officer, Functional Head of Procurement, Head of Corporate Services, Procurement Director, Head of Claim Management, Team Leader and Category Manager etc. all adding to extensive information for this research.
In our study, we selected a non-probability judgment sample at Uniper. This was experienced employees that helped our research by sharing high quality information (Ghauri & Grønhaug, 2010; Saunders, Lewis & Thornhill, 2009). Utilizing this sample is debated to be preferable in a case study, focusing on a smaller sample, with a selected
case or objective to provide the researcher with deep information and insights with potential to be compared with existing theory.
Pre-knowledge within the field of investigation is key to generalize the findings from the interviewees (Ghauri & Grønhaug, 2010). To gain access to individuals with the correct pre-knowledge within GVT communication, a constructive dialogue with Uniper helped us find the proper interviewees for the research. It was of great importance the interviewees had correct prerequisites of GVT experience to answer our interview questions and contribute to our research. Table 1 is a summary of participants contributing to this research, the list is not in chronological order to ensure anonymity.
Table 1. Respondent Summary.
Interviewees Division Type Location Duration Date
Respondent 1 Subsidiary In person Malmö 61 min 2018-04-09 Respondent 2 Subsidiary In person Malmö 65 min 2018-04-09 Respondent 3 Subsidiary In person Malmö 61 min 2018-04-09 Respondent 4 Subsidiary In person Malmö 58 min 2018-04-09 Respondent 5 Subsidiary In person Malmö 60 min 2018-04-09 Respondent 6 Subsidiary In person Malmö 59 min 2018-04-10 Respondent 7 Subsidiary In person Malmö 66 min 2018-04-10 Respondent 8 Subsidiary In person Malmö 53 min 2018-04-10 Respondent 9 Subsidiary In person Malmö 56 min 2018-04-10 Respondent 10 HQ In person Düsseldorf 53 min 2018-04-17 Respondent 11 HQ In person Düsseldorf 61 min 2018-04-17 Respondent 12 HQ In person Düsseldorf 49 min 2018-04-17 Respondent 13 HQ In person Düsseldorf 43 min 2018-04-17 Respondent 14 HQ In person Düsseldorf 47 min 2018-04-17 Respondent 15 HQ In person Düsseldorf 62 min 2018-04-18 Respondent 16 HQ In person Düsseldorf 75 min 2018-04-18 Respondent 17 HQ In person Düsseldorf 69 min 2018-04-18 Respondent 18 HQ In person Düsseldorf 50 min 2018-04-18 Respondent 19 HQ In person Düsseldorf 58 min 2018-04-18 Respondent 20 HQ In person Düsseldorf 53 min 2018-04-18 Respondent 21 HQ In person Düsseldorf 45 min 2018-04-18
3.2.5(Interview(Guide(
Our interview guide (See Appendix 1) was constructed in line with our research background and problem. The aim with the interview guide was to provide interviewees at Uniper with an introduction to our research and a presentation of ourselves to become
