In today’s competitive business environment, virtual collaboration across organizations has been embraced due to the higher efficiency and dexterity it brings. Members in such virtual organizations collaborate through information and communication technologies across the globe. Hence, the team structure and design lies at the very heart of intra-team member behavior, as well as how those virtual teams and virtual organizations can reach smooth interaction.
This paper addresses the critical issue by examining the relationships between collaboration effectiveness and virtual technology. In specific, we examine the effect of the perceived usefulness and perceived ease of use of the virtual technologies adopted on the effectiveness of cross-functional collaboration. We collected 245 eligible questionnaires from the members and leaders in cross-functional virtual teams. In this study, we adopt factor analysis and structural equation modeling analysis to identify and examine the determinants for collaboration effectiveness. The result shows that the perceived usefulness and ease of use of the technologies, as our expectation, have positive effects on the cross-functional collaboration effectiveness. We also discuss how the technologies can be utilized for the improvement of virtual cross-functional collaboration, in order to enhance the cost performance and the response system for the collaborating firms along the supply chain.