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The virtues of the virtual organization

Cec Pedersen (University of Southern Queensland, Toowoomba, Queensland, Australia.)
Johann Nagengast (University of Applied Sciences Deggendorf, Deggendorf, Germany.)

Strategic HR Review

ISSN: 1475-4398

Article publication date: 18 April 2008




This paper attempts to conceptually clarify and examine success factors for the establishment and subsequent sale of a successful small virtual organization, Millennium3, in the financial services sector in Australia.


The paper describes the concept of a virtual organization, outlines some distinct characteristics of virtual organizations and provides some historical and current background to Millennium3 (M3). It then provides a descriptive evaluation of outcomes from semi‐structured interviews with all M3 executives and, based on those interviews and organizational structure, examines its overall performance.


The following values describe how M3 conducts business: lifelong learning; teaching by example; interdependence; customer intimacy; all relationships founded on a win/win basis; and respect and courtesy.


The paper concludes with some critical success factors for M3 and gives the reader an idea how a corporation successfully works as a virtual organization.



Pedersen, C. and Nagengast, J. (2008), "The virtues of the virtual organization", Strategic HR Review, Vol. 7 No. 3, pp. 19-25.



Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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