Management challenges arising from the use of virtual work

Purpose – Literature on virtual and other new ways of work is diverse and confusing, indicating a need for a framework to structure and systematize the related terminology. The purpose of this empirical study is to address the lack of empirical research on how well (and if at all) characteristics of employees' national and occupational culture determine the management challenges and employees' satisfaction with virtual work arrangements. Design/methodology/approach – Empirical data was gathered using case study research. An Estonian and a Russian company operating in the service sector suited best as they had a diverse multinational workforce and several years of virtual work experience. Findings – The paper concludes that occupational culture determines much better than national culture the employees' attitudes towards and satisfaction with virtual work arrangements. Research limitations/implications – The main limitation arose from the lack of national culture research in East European countries: for many of these nations, national culture dimensions/characteristics (e.g. like offered by Hofstede) are still unknown. Practical implications – The results help service organizations' managers to prepare a multinational workforce better for virtual work, knowing ahead the potential challenges and thus train the employees based on their occupational culture background. Originality/value – The paper contributes to theory by offering a framework which enables to systematize the diverse range of terminology used for new, flexible ways of work. The case studies reveal a huge gap waiting to be filled with research on national culture characteristics of East European countries.