| Much of the recent interest surrounding dot-corn organizations centers upon their adoption of a virtual organizational form. The flourish of virtual organizations not only symbolizes the rebirth of entrepreneurship but also fuels excitement over the Internet economy. However, the failure of many Internet companies raises important issues related to their management and sustainability.; This research adopts the view of “doubled” organizational representation, which acknowledges two independent but interrelated layers of organization presence—a “virtual” layer that is mediated through computer interfaces and a “physical” layer that operates in the material world. An interpretive case study that combines both participant observation and semi-structured interviews is conducted in a pre-IPO startup company in Silicon Valley hosting online telephony services. The findings indicate that Giddens' concept of “time space edge” shed important light on the design and performance of virtual organizations.; The study suggests that there are significant costs associated with maintaining and transforming time space edges in both physical and virtual representations. Startup companies should realize that it takes time and resources to bridge time space edges and that pursuing short-term performance could potentially hinder future performance. Startups can be built to last, not just built to sell, if they are designed with these considerations in mind. |
