Knowledge sharing in virtual teams: The significance of psychic distance

Organizations are increasingly turning to the use of virtual teams as a way of responding to the rapidly changing demands of global work. Using virtual teams allows companies cost-efficient access to employees with a diverse range of expertise. However, previous studies have shown that virtual teams struggle particularly with practices related to sharing knowledge. Most research thus far has attributed these challenges to the physical separation of team members. This research will study the knowledge sharing practices of virtual teams through a novel perspective by considering the concept of psychic distance, a subjective conceptualization of distance. In the past, the concept of psychic distance has been applied to the internationalization decisions of firms. Psychic distance encompasses the individual’s perceptions of similarity or difference to distant others. These perceptions are moulded by individual, environmental and cultural factors. High psychic distance is perceived to restrict the communication and interaction of individuals, both being essential elements in organizational knowledge sharing. Thus, the objective of this research is to evaluate the significance of psychic distance in relation to knowledge sharing in virtual teams. More specifically, the research will focus on the processes of socialization and interaction as essential components of knowledge sharing in virtual teams. The research was conducted as a case study focusing on four virtual teams within an industrial organization. The empirical data of the research was collected through seventeen semi-structured interviews conducted with the members of four virtual teams. From the interview data, four themes emerged in relation to the knowledge sharing practices of virtual teams. First, members of virtual teams described varying communication habits and the conflict situations arising from these variances. Second, the value of team-level interaction was emphasized as a means of constructing a collective identity. Third, team members described challenges related to the socialization and training of distant newcomers. Fourth, a significant connection was established between the socialization lifecycle of the team, and the changes in communication and interaction between team members. This research provides a novel insight into the relationship between psychic distance and the knowledge sharing practices of virtual teams. The results of the research suggest that the existence of psychic distance between individual team members limits the interaction and socialization processes of virtual teams, demonstrating the significant role that psychic distance holds in relation to intra-team knowledge sharing. However, the results also reveal a possible connection between psychic distance and the lifecycle of virtual teams, suggesting that psychic distance between team members is lowered as the team progresses in its lifecycle. This research acts as an initiator for further research concentrating on psychic distance in virtual teams