Structural and Functional Dynamics of Virtual Organizational Networks - Insights from Network Theory


Journal of Computer and Communication Networks

Received On : 18 January 2025

Revised On : 19 February 2025

Accepted On : 02 April 2025

Published On : 30 April 2025

Volume 01, 2025

Pages : 084-095


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DOI
https://doi.org/10.64026/JCCN/2025009
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Abstract

The research explores the dynamic aspects of virtual networks in virtual organizations using a network theoretical approach. By analyzing 20 virtual organizations across different industries, the study seeks to find out what factors contribute towards effectiveness of virtual networks and suggest some ways of improving organizational performance within this context. The result show that there are contrasting impacts of centralization and decentralization whereby centralized networks have been found to be more efficient in decision making, but less innovative compared to decentralized ones. The research emphasizes on network density that indicates high communication frequency and trust among its members leading to enhanced collaboration efforts. In addition, the research focuses on the boundary role at the interface of the organization and the external environment with the aim of introducing the external knowledge and resources for organizational enhancement. The findings presented herein suggest that while centralization and decentralization are often considered opposites, both concepts have the potential to either increase or decrease decision making efficacy and innovation. They emphasize the importance of the network structure, density, and positions, which are involved in communication and resource exchange. Some of the practical implications include the following: First, organizations should be more adaptable when designing their networks, especially regarding the centrality of nodes. Second, organizations should properly manage central nodes of their networks.

Keywords

Virtual Networks, Structural and Functional Dynamics, Network Theory, Centralization and Decentralization, Network Density, Boundary-Spanning Roles, Organizational Performance.

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Cite this Article

Karthikeyan K, “Structural and Functional Dynamics of Virtual Organizational Networks - Insights from Network Theory”, Journal of Computer and Communication Networks, pp. 084-095, 2025, doi: 10.64026/JCCN/2025009.

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© 2025 Karthikeyan K. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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