Global Virtual Team Communication - 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 ! ! !!!!!!!!!!!!TABLE&OF&CONTENTS& 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 ( ( ( ( ! ! This page intentionally left blank. ! ! 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). ! 1! ! 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