2013 46th Hawaii International Conference on System Sciences Participative Goal Setting in Self-Directed Global Virtual Teams: The Role of Virtual Team Efficacy in Goal Setting Effectiveness and Performance Andrew Hardin University of Nevada, Las Vegas [email protected] Clayton Looney University of Montana [email protected] Mark Fuller University of Massachusetts, Amherst [email protected] Gregory Schechtman University of Nevada, Las Vegas [email protected] Abstract SDVT as a geographically unrestricted group of people who use information technology to collaborate, and who have the freedom and discretion to organize their work, group structure, and communication processes to best pursue their goals. Note this definition encompasses globally distributed SDVTs. Such teams are particularly germane to this research as the ability to establish efficient goal setting processes is critical in geographically distributed, culturally diverse teams. While the organization of work and group structure constitute essential ingredients to the success of SDVTs, the current study focuses specifically on the participatory goal setting process used by these globally distributed virtual teams. Research shows that the process of setting goals improves productivity [7], satisfaction [8], intrinsic motivation [9], persistence in the face of obstacles [10] and employee performance evaluations [11]. While much of the goal literature focuses on individuals, other research suggests that participatively set group goals may improve performance outcomes through various motivational processes [12-14]. Because of the overlap between the motivational forces operating within goal theory and social cognitive theory (SCT), individual and collective efficacy beliefs have frequently been evaluated for their role in the goal setting process. However, to our knowledge no research has simultaneously explored the relationship of collective efficacy and group goals in a global virtual team context. As such, the objective of this study is to extend research examining how virtual team efficacy (VTE)—a domain specific form of collective efficacy—impacts global virtual team performance through specific mediating processes. We accomplish this objective by empirically assessing the direct relationship of VTE to goal specificity and goal difficulty, and its indirect relationship with goal commitment. We then examine the relationships of the goal related variables with actual SDVT performance. A multi-wave, survey methodology was The frequent use of global virtual teams for accomplishing organizational tasks helps explain the continued interest in research designed to identify and disentangle the relationships among factors influencing team performance. Participative goal setting represents one factor that may be particularly important in these settings. 52 self-directed global virtual teams, consisting of 318 participants, were observed during the life cycle of a team project in order to examine these critical relationships. As hypothesized, results reveal that virtual team efficacy (VTE) indirectly relates to goal commitment through the participative process of setting specific and difficult goals. In turn, participatively setting difficult goals and the teams’ commitment to those goals directly affects actual performance. These findings extend prior research applying social cognitive theory (SCT) in global virtual team research. Implications for theory and practice, as well as opportunities for future research are discussed. 1. Introduction Global virtual teams are increasingly used to accomplish work in today’s organizations. Some reports indicate that over half of all professional employees currently work, or have worked, in virtual teams [1]. The frequent use of global virtual teams is expected to continue, given the benefits that such teams provide, including reduced travel costs [2], the ability to select the right employee skill set for a project regardless of location [3, 4] and the growing availability of increasingly sophisticated technology to support such distributed work [5]. In many cases, global virtual teams are responsible for decisions about their own work processes and objectives, a work structure referred to as the Self-Directed Virtual Team (SDVT). While some research has addressed SDVTs [6], formal definitions of these self-guided teams are mentioned less frequently. In the current study, we refer to an 1530-1605/12 $26.00 © 2012 IEEE DOI 10.1109/HICSS.2013.442 362 363 used to assemble the responses of the SDVT members during the life cycle of a global virtual team project. Results demonstrate the positive relationship of VTE to the goal related variables, as well as relationships between SDVT performance and goal difficulty and commitment. The value of these respective findings lies in the provision of valuable theoretical and practical insight into the unique nature of goal setting in SDVTs. goal setting process. In addition, we investigate the relationships of goal specificity, difficulty, and commitment on actual performance. 2. Theory 2.1. Virtual Team Efficacy Social cognitive theory (SCT) proposes a triadic reciprocal relationship between the person, the environment, and behavior. Couched within the person element of SCT is self-efficacy, a cognitive process responsible for a number of self-regulatory processes impacting individual level behavioral outcomes. While much of the SCT literature has focused on individual self-efficacy beliefs, a large body of research has also been conducted at the group level. At the group level, studies are primarily concerned with the influence of collective efficacy beliefs on group level behavioral outcomes. Collective efficacy refers to a general level concept reflecting a group’s perceived conviction that it can successfully accomplish a task within a specific domain [26]. Developed as a specific form of collective efficacy used in the prediction of virtual team outcomes, VTE is formally defined as, “a group’s belief in its ability to work together successfully in a noncollocated, technology-mediated environment” [5], p 215. VTE develops through similar sources, serves similar functions, and operates through similar processes as the more general concept of collective efficacy. Sources used in the development of VTE include enactive mastery (e.g., hands on experience), vicarious experience (e.g., behavior modeling training), verbal persuasion (e.g., coaching) and affective states (e.g., anxiety). While these sources are commonly investigated in efficacy studies, the processes through which these beliefs influence behavioral outcomes are less frequently investigated. The exclusion of these mediating mechanisms has occurred despite Bandura’s [27] admonition that failing to include these processes results in only weak tests of SCT. While these mediating process are known to operate at the individual and group levels, the mechanisms through which they influence behavioral outcomes may differ depending on the level of analysis. At the group level, mediating processes include cognitive factors (e.g., transactive memory, group think), motivational factors (e.g., effort, persistence), affective states (e.g., group anxiety, conflict), and selective processes (e.g., goal selection, conflict management techniques). These group level mediating processes can also differ depending on the domain in which they are investigated. In the current 1.1. Global Virtual Teams Prior research defines virtual team interaction as “geographically unrestricted.” [15] Global virtual teams are composed of two or more people, often culturally diverse, distributed across time and/or space, working together toward a shared goal [16]. Global virtual teams bring value in part due to their ability to organize by electronic workflow instead of physical location [17], and also by allowing organizations to bring multiple perspectives to bear on important issues [18]. Understanding the functioning of such teams has become a rich area of research with many studies examining how global virtual teams differ from co-located teams in terms of coordination and communication [19-21], as well as how they are affected by the technologies that underlie virtual teamwork [22, 23]. 1.2. The Self Directed Global Virtual Team Based upon the concept of the self-directed work team (SDWT), self-directed virtual teams (SDVTs) represent a specific form of virtual team commonly used to solve organizational problems [6]. Similar to SWDTs, SDVTs lack formal leadership, forcing team members to internally determine their roles and responsibilities. While obvious differences exist between SDWTs and SDVT’s (particularly in the latter’s need to organize their activities in geographically distributed, technology-mediated environments), SDVT’s also share many common traits with SDWTs. For example, members of SDVTs must similarly decide how to work together, as no manager exists in any traditional sense [24]. This requirement of self-management requires SDVT members to master a broader skill set in order to capably engage in decision-making, task planning, and execution [25]. While past research on SDVTs has examined several success factors, little research has focused specifically on the participative goal-setting processes of these distributed teams. In the current study, we look at the unique nature of goal setting in SDVTs, specifically examining how virtual team efficacy (VTE) acts as an important antecedent to the 364 363 study, thee context of interest is geographically y distributed d, technology mediated team ms. Therefore, the specific form of collective efficacy e mostt predictive is VTE. Goals can bee set externaally, or throuugh a G Paarticipative deecision particcipative proceess [40]. makiing refers to tthe joint manaagement of perrtinent aspeccts of work methods, tassk schedulingg, and assiggnment of grooup members to tasks undder the team m’s control [41]. In situationns where SDVT Ts are used,, the team is eempowered w with the discrettion to deterrmine and execcute courses oof actions theyy deem approopriate to reaach their goalls [41, 42]. Thus, particcipative goal ssetting can be conceptualizeed as a speciial form of partticipative decission making. C Consistent witth social iddentity theoryy, the empoowerment to participate in teeam goal settinng may also increase the m member’s social identificatioon and mitment to thee group [43]. Collectively ssetting comm challlenging perforrmance goalss results in higher produuctivity and satisfaction [40, 44]. These relatiionships devellop during thee accommodattion of inforrmation proceesses associatted with colllective cognnition [45] thaat presume a group level effect beyoond the sum off the individuaal efforts of thee team mbers. mem 2.2. Goals The im mpact of individual goals on organizationall performancce has been th he focus of oveer four decadess of research h [28, 29]. Bro oadly speaking g, goals can bee seen as an n outcome that a person expllicitly seeks to o accomplish h [30]. Mo ore specifically, goals aree commonly y defined as desired end states to bee achieved within w a specifi fic period of tim me [31]. Goalss are also suggested s to stimulate hum man behavior, motivating g individuals to achieve performancee outcomes [32]. Thus,, the core off goal theory y hat consciously held goals will w ultimately y suggests th affect actio on [33]. Goals influence performance thrrough severall ms [31]. Firsst, goals cognitively and d mechanism behaviorally stimulate effort. e Goals also a galvanizee y effort towaards the pursuaance of end staates, especially when goalls are difficult to achieve [10]. [ Finally,, goals ind directly increaase task perrformance by y motivating g people to find and usse appropriatee knowledgee and strategiess [34]. Taken in total, goalss enhance peerformance “b because they mobilize m effort,, direct atteention, and encourage peersistence and d strategy deevelopment” [3 32]. Goals that are speecific and diffficult lead to o n less specificc, easier goalss higher perrformance than [31]. Beccause “do-you ur-best” goalss are defined d idiosyncrattically, lack off specificity ressults in a broad d range of acceptable a perfformance leveels that do nott necessarily y invoke the motivational m pro ocesses, which h lead to hig gher performaance. Easily atttainable goalss also fail to o serve in a motivational m cap pacity, and aree therefore less effective at increasing g performancee than are difficult goals. c iss critical to th he performancee Goal commitment enhancing effects of setting goaals [35, 36]. g a moderating g effect of goal commitment,, Suggesting the respecctive influencce of goal sp pecificity and d difficulty is i increased when w commitment to goals iss high [37]. ugh less studiied, the mediaating effect off Althou group leveel goal commitm ment has also been proposed d [13]. In n the latter case, c it appears that goall commitmeent may explaiin how goal specificity s and d difficulty influence perrformance ou utcomes. Goall y commitmeent has also been suggesteed to directly influence performance outcomes, as a team’ss o commit to a goal increasses the team’ss decision to performancce by encouraaging all mem mbers to strivee harder [38]] and collaboraate more intenssely [39]. 3. R Research Moodel & Hypotheses Inn this researchh, we examinee the role of vvirtual team m efficacy (VT TE) as an important anteceddent to the S SDVT goal settting process. Specifically, V VTE is sugg ested to be inddirectly related to goal comm mitment throuugh goal speccificity and goal difficulty. Goal difficculty, goal speecificity, and ggoal commitmeent are then proposed aas predictors of actual SDVT perfoormance. The ffollowing sectiions provide suupport for thhe research moodel depicted inn Figure 1. Figure e 1: Research h Model 3.1. Virtual Teaam Efficacy as an Antecedent he Goal Setting Process to th S elf-efficacy rresearch repeaatedly demonnstrates that efficacy belieefs predict thhe activities ppeople pursuue. Naturally, people do noot jump in to water withoout first belieeving they cann swim [27]. Thus, peopple’s beliefs in their abilitiess direct the acttivities they pursue, as well as their effoort and persisteence in mplishing thosse activities. accom 365 364 Collective efficacy beliefs operate in a similar manner to self-efficacy beliefs. Groups naturally decide which activities to pursue based upon their perceptions of the team’s conjoint capabilities. A number of factors influence these perceptions. Individual abilities and self-efficacy beliefs of the team members, group level factors such as trust and cohesion, process related factors such as competition and cooperation, and task related factors such as task importance [45]. In technology mediated environments, group level factors such as group potency and computer collective efficacy may also precede the development of collective efficacy beliefs [5]. Developing a collective belief in the team’s ability takes time because it involves the development of a group level cognition beyond the sum of the individual members’ self-efficacy beliefs [27]. Thus, the measurement of collective efficacy beliefs require the establishment of group level agreement through the application of statistical techniques such as the rwg(j) coefficient [46], or the calculation of interclass correlations [47]. Teams with higher collective efficacy beliefs tend to be more effective [48]. Consequently, groups with higher collective efficacy are also likely to be more effective during the goal setting process [14]. As a result, groups with higher collective efficacy set more specific and difficult goals than do traditional groups with lower collective efficacy [49-51]. VTE represents a domain specific form of collective efficacy [5]; in a global virtual team context, VTE is expected to be a significant, positive predictor of the specificity and difficulty of goals set participatively by the SDVTs. Hypothesis 4: Goal difficulty will be significantly positively related to goal commitment Hypothesis 1: Virtual team efficacy will be significantly positively related to goal specificity. 3.2. Goals and SDVT Performance SCT suggests specific mediating mechanisms through which collective efficacy beliefs influence behavioral outcomes. Among these mediating mechanisms are selective processes. Teams with higher collective efficacy tend to set more specific and difficult goals, and the process of selecting those goals can influence various behavioral outcomes including commitment to team goals. Based on the theoretical mechanisms of SCT, the relationship of collective efficacy to goal commitment is expected to be indirect through the participative process of setting specific, difficult goals. Groups with higher collective efficacy tend to set more specific and difficult goals [40], and group goal commitment is higher when collective efficacy and the level of goals are congruent [14]. In globally distributed contexts this effect may be even more pronounced because it is during the process of setting goals that distributed members begin to identify with the team. Team identification in turn impacts commitment to group goals [40]. If teams with high VTE set easily attained or non-specific goals, incongruence will occur. As a result, members will be less likely to be committed to the team’s goals. Hypothesis 5: Goal specificity will partially mediate the relationship between virtual team efficacy and goal commitment. Hypothesis 6: Goal difficulty will partially mediate the relationship between virtual team efficacy and goal commitment. Goals positively impact organizational performance at both the individual and group levels. Goals can be viewed as an outcome, which organizational members seek to accomplish. Goals stimulate human behavior that motivates effort used to achieve performance outcomes, whether individually, or in groups. Goals indirectly increase task performance by helping individuals and groups find and use appropriate knowledge and strategies, as well as by directly encouraging members to strive more vigorously [38] and collaborate more intensely [39]. In global virtual teams, goal setting effectiveness constitutes an important component of team success [52]. Goal difficulty and commitment have both been demonstrated to directly influence virtual team performance [53, 54]. Specific goals enhance performance to a greater extent than nonspecific goals. Therefore, goal specificity should also share a positive relationship with actual performance. Hypothesis 2: Virtual team efficacy will be significantly positively related to goal difficulty. Participatively setting goals leads to a stronger identification with the team’s decision making processes, in turn impacting downstream commitment to those goals [40]. However, commitment to goals often relies on the nature of the goals set by the team. Teams are suggested to be more committed to difficult, specific goals than either moderately difficult or idiosyncratically defined “doyour-best” goals [37]. In other words, the process of participatively setting specific, difficult goals aids in the development of commitment to those goals. Hypothesis 3: Goal specificity will be significantly positively related to goal commitment 366 365 as establishing goals through the specific goal setting processes germane to this research, were both wellestablished predictors of virtual team success. No other manipulations were imposed. Hypothesis 7: Goal specificity will be significantly positively related to actual performance Hypothesis 8: Goal difficulty will be significantly positively related to actual performance 4.3. Data Collection Hypothesis 9: Goal commitment will be significantly positively related to actual performance Three surveys were administered during the project. Demographic information was collected at project initiation. To allow sufficient time for group level perceptions to develop, VTE was collected several weeks after the project started [26]. To reduce the possibility of common-method variance, goalrelated data were collected a few weeks after the VTE measure was administered [56]. Actual performance was evaluated following project completion, which occurred several weeks later. 4. Methodology Data were collected during a large scale research project focused on global virtual team effectiveness. In all, 52 SDVTs, consisting of 318 undergraduate and graduate business students from universities in the United States, the United Kingdom, and Hong Kong, participated in the study. To maintain realism, group size and makeup were not controlled, however teams had at least one member from each university participating in the respective projects. This method possesses the advantage of nurturing the development of a general research model that can be confidently applied in future studies, maximizing theoretical and practical relevance [5]. 4.4. Goal Specificity, Difficulty, and Commitment Goal measures were adapted from the prior literature. A one to seven Likert-type scale anchored by strongly disagree and strongly disagree was used. The measurement items, factor loadings, and crossloadings were all within accepted conventions1. Cronbach’s alpha for goal specificity, goal difficulty, and goal commitment was .92, .76, and .95, respectively. 4.1. Technology WebCT was used to facilitate the SDVT projects. A popular online learning environment, WebCT can be used for facilitating both on campus and distance learning courses. WebCT was selected as the collaborative platform for the project because of its ability to facilitate group discussion and the goal setting process (e.g., e-mail and discussion boards), its ability to allow for the sharing of project documents, and its common use among the participating universities. The ability for instructors to return graded deliverables to the project teams was an additional benefit provided by the WebCT platform. 4.5. Virtual Team Efficacy Virtual team efficacy was assessed using an existing four item measure developed and validated by [5]. Consistent with recommendations for collective efficacy scales [57], a yes/no, 10 to 100 scale was utilized. Cronbach’s alpha for the virtual team efficacy measure was .95. 4.6. Actual Performance 4.2. Tasks Team performance was measured via a percentage based final project grade (0 to 100) awarded by an instructor unaware of the study hypotheses. Tasks completed by the SDVTs involved business problems described in the “choose” quadrant of the McGrath [54] circumplex, a well-known taxonomy of group task types [55]. Specifically, project tasks involved deciding on issues with no correct answer (i.e., decision-making tasks). Business problems included the development of a project plan using project management principles, and in some cases, involved the development of an e-commerce web site. Virtual teams were allowed to assign and structure the project tasks as desired, and were free to set their own goals. Students were counseled that being aware of the skills of their teammates, as well 5. Analysis A two-step process was used to evaluate the group-level model. First, intergroup agreement among the respective SDVTs was evaluated. The measurement and structural models were then tested. 1 Instrument development details were omitted due to space constraints, but are available as an appendix upon request from the first author. 367 366 Bolger [62], were used. Baron and Kinney [61] recommend that the direct path between the independent and dependent variables should be established prior to including the mediating variable in the model. In the current study, this means that the direct path from VTE to goal commitment should be estimated first. The weight associated with this path was .568 and significant at the p < .001 level. The second step involves estimating the paths from the independent variable(s) to the mediating variable. In the current study, this requires using the paths from VTE to goal specificity and goal difficulty estimated previously (.481. and .546 respectively). The final step recommended by Baron and Kinney [61] involves estimating the path from the independent variable to the dependent variable with the mediating variable(s) in the model. In the current study, this means estimating the path from VTE to goal commitment with both goal specificity and goal difficulty included in the model. The path from VTE to goal commitment was not significant (.114), indicating that goal specificity and difficulty collectively mediated the VTE goal commitment relationship. Although the resultant non-significant path between VTE and goal commitment would normally be interpreted as indicating complete mediation under the Baron and Kenny [61] guidelines, Shrout and Bolger [62] recommend estimating the effect proportion mediated (PM) as an additional measure of the strength of mediation in the model. In the current model, calculating this effect is particularly important, as it allows for a closer examination of the respective partial mediating effects of goal specificity and difficulty. PM is calculated by first estimating the indirect effect (the regression weight from the independent variable (IV) to the mediating variable multiplied by the regression weight from the mediating variable to the dependent variable (DV)) when the direct path is included in the model, and then dividing by the regression weight from the IV to the DV (step 1 as recommended by Baron and Kinney [61]). To evaluate the respective PM for goal specificity and goal difficulty, two steps are necessary [62]. First, the weight associated with the path from VTE to goal specificity (.480) multiplied by the regression weight associated with the path from goal specificity to goal commitment (.492) are used to calculate an indirect effect of .236. The indirect effect is then divided by the weight associated with the direct path from virtual team efficacy to group outcome perceptions (.568), as estimated in step 1 of the procedure recommended by Baron and Kinney [61]. This results in a PM of .415. Next, the weight associated with the path from VTE to goal difficulty 5.1. Step 1 - Intergroup Agreement To insure the presence of a group level effect, intergroup agreement must be established before individual level responses can be aggregated to the group level [26]. One method for demonstrating agreement is through the calculation of the rwg(j) coefficient, which is well-suited for studies involving multi-item latent constructs. This approach overcomes the “all-or-nothing” proposition ascribed to common methods used for establishing agreement for single-item measures [58]. The rwg(j) formula was applied to the VTE, goal specificity, goal difficulty, and goal commitment measures. Each exceeded the .7 value advocated as sufficient for establishing intergroup agreement [59]. Based upon the results of this analysis, the study data were aggregated to the group level. 5.2. Step 2 - Model Tests The relatively small group level sample (52 groups) precluded the use Covariance Based SEM. Components based PLS was therefore used to evaluate the measurement and structural models. 5.3. Measurement Model Results Following aggregation, SmartPLS 2.0 was used to reevaluate the validity of the VTE, goal specificity, goal difficulty, and goal commitment measures previously established at the individual level using AMOS 19 (details available from the first author upon request). Results revealed that all items loaded above .6 on their respective constructs, demonstrating the convergent validity of the measures. Discriminant validity was established in two ways. First, the square root of the average variance extracted (AVE) exceeded the respective constructs’ correlation with any other variable in the model. Second, all item loadings and cross-loadings exceeded the minimum difference of .10 [60]. 5.4 PLS Model Results Supporting Hypotheses 1 and 2, virtual team efficacy was significantly, positively related to goal specificity (b = .481, t (51) = 5.915, p < .001), and goal difficulty (b = .546, t (51) = 9.629, p < .001). Goal specificity (b = .524, t (51) = 5.915, p < .001) and goal difficulty (b = .441, t (51) = 9.629, p < .001) were in turn significantly, positively related to goal commitment, supporting Hypotheses 3 and 4. To evaluate Hypotheses 5 and 6, procedures recommended by Baron and Kinney [61], complemented by those recommended by Shrout and 368 367 inconnsistent with goal theoryy, no relatioonship betw ween goal speciificity and actuual performancce was obserrved (Hypotheesis 7). We suspect that this result may have occurredd because the ggoal specificityy items weree focused moree on process-reelated activitiees than on outcomes-relaated activitiess. Therefore, goal speciificity may noot have invokked the motivaational proceesses necessaary for increeasing perform mance outcoomes. Consisteent with goal thheory, goal diffficulty and ggoal commitm ment were foundd to be significcantly, posittively related tto actual performance (Hypootheses 8 andd 9). (.546) mulltiplied by the regression weiight associated d with the path from goal difficu ulty to goall u to calculate an indirectt commitmeent (.394) are used effect of .215. . This is then divided by b the weightt associated with the direct path from m virtual team m o group outco ome perceptio ons (.568), ass efficacy to estimated in i step 1 of thee procedure reccommended by y Baron and d Kinney [61]. The result is a PM of .379. Summing these two ratios results in a total PM off 79) = .794 witth 1.0 represen nting completee (.415 + .37 mediation. The results off this analysis provide p furtherr support forr Hypotheses 5 and 6. Failing to support Hypothesis H 7 th he relationship p between go oal specificity and actual perrformance wass non-signifiicant (b = -.205, t (51) = 1.49, ns). Supporting g Hypothesis 8, goal difficulty d wass significantly, positively related r to actuaal performancee (b = .236, t (51) = 2.39, p < .001). Finaally, supporting g Hypothesiss 9, goal com mmitment wass significantly, positively related to actu ual performancce (b = .405, t 4, p < .001). Results R are dep picted in Tablee (51) = 2.44 1. Table 1: PLS Results 6.1. Theoretical IImplicationss B By examining the impact off VTE on thee goalsettinng processes oof SDVTs, thiss study extendss prior reseaarch in the arreas of globall virtual team ms and particcipative goal setting. Consistent with SC CT and goal theory, VTE E predicted the difficultyy and DVTs. speciificity of goalss participativelyy set by the SD Conttributing to theeory in this area, the relatioonship betw ween VTE and goal commitm ment was foundd to be mediiated by the coombined effectts of goal speccificity and ggoal difficultyy. This findingg extends the global virtuaal team and participative gooal setting literratures by eestablishing thhat teams witth higher VT TE are comm mitted when setting more specific and more difficcult goals. Thhis finding iss important beecause priorr research haas generally assumed a direct relatiionship betweeen collective efficacy andd goal comm mitment in tradditional teams. U Unexpectedly, goal specificitty was unrelaated to actuaal performancee. This non-siggnificant relatioonship may be due to the measure of goal speccificity emplloyed in the cuurrent study, aas it was designed to focuss on process- rrather than ouutcome-related goals. This finding is impportant, as it enncourages the ppursuit of reesearch investtigating the poossible relationships betw ween process-rrelated goals and other global virtuaal team successs factors. Goaal difficulty annd goal comm mitment were significant, poositive predicttors of SDV VT performancce. These findiing help to brroaden the aapplication of goal theory bby establishingg these relatiionships in a geograpphically distrributed envirronment wheree goals were pparticipatively set by the members. Thhis later findding is particcularly impoortant because it implies thaat in SDVTs, where decissions are made internally by the team m, the difficculty of goalss set by the teeam, as well as the team m’s commitmeent to those goals foster global virtuaal team succeess, adding to the broad rannge of literaature on this toopic. Cumulatiively, these finndings also extend the VTE nomoloogical networrk by articuulating additioonal mechanissms through which VTE E influences behhavioral outcom mes. 6. Discusssion Hypoth heses 1 and 2 results reveaaled that VTE E significantly, positively predicts the specificity s and d o goals set paarticipatively by b the SDVTs. difficulty of This findin ng is consisten nt with SCT, as well as priorr findings reeported in the group literatu ure. Consistentt with goal theory, t Hypoth heses 3 and 4 results revealed d that goal specificity and goal diifficulty weree r to goall commitment. significantly positively related The relatio onship between n VTE and goaal commitmentt was partiaally mediated d by goal sp pecificity and d difficulty respectively r (H Hypotheses 5 an nd 6), resulting g in a co omplete mediation of th he VTE-goall commitmeent relationship p. This finding g is consistentt with the group level goaal setting literaature, in which h uence of collecctive efficacy beliefs b and thee the congru difficulty of o goals are expected e to result in greaterr goal com mmitment. Uneexpectedly, and a somewhatt 369 368 6.4. Limitations Research 6.3. Practical Implication The establishment of a positive relationship between VTE and goal setting in SDVTs provides valuable guidance to organizational managers interested in improving the performance of globally distributed teams. For example, in an effort to raise the VTE of SDVTs (and ultimately goal setting effectiveness), specific managerial interventions can be designed around the four sources of efficacy information specified by SCT. For example, enactive mastery gained through prior performance or handson training is suggested to be the strongest source of efficacy building information. Activating VTE beliefs in a similar manner, training interventions that provide opportunities for SDVTs to practice their skills may be implemented by managers, boosting VTE beliefs, and ultimately improving goal-setting processes in globally distributed virtual teams. Another source of efficacy, vicarious experience, can be delivered through the observation of others, or oneself, demonstrating a given task or skill. Based on this knowledge, managers can provide opportunities for SDVTs to observe other teams as they successful participate in task-related activities. When attempting to influence efficacy through observation, it is also common to edit video tapings to reflect only successful behavior. In a similar manner, managers could record SDVTs as they participate in video conferencing meetings, or record desktop conferencing and chat sessions, and then edit those recordings so that only successful interaction is shown, thus increasing VTE. The third source of efficacy information, verbal persuasion, is provided through feedback mechanisms, with positive feedback tending to boost efficacy perceptions. This is perhaps the easiest method for managers to implement. When globally distributed SDVTs engage in effective decisionmaking, managers should provide feedback that reinforces such behavior. Reward structures that incent team effectiveness could be designed as an additional feedback mechanisms used to increase VTE in a reciprocal fashion. Finally, psychological and affective states can also affect efficacy beliefs. In these situations, rather than designing training initiatives, managers may need to simply monitor SDVTs for signs of physical and emotional stress and take action when signs are detected. For example, providing SDVTs with unscheduled breaks, or providing extracurricular entertainment activities, may reduce the psychological and affective states that are detrimental to the SDVTs wellbeing, and ultimate performance. and Implications for As with all studies, this study has its limitations. While a field study adds realism to the research, the methodology does not allow for the control of extraneous factors that may have influenced our results. Despite this limitation, we believe the methodology offered several benefits. For instance, the multi-wave survey allowed us to better control for common method variance than using a crosssectional design, and the results are applicable to a wider range of virtual teams and tasks than if we had used a controlled experimental setting. The use of student subjects may also be criticized; however, their use in studies for developing theoretical insight in collaborative studies is not uncommon, and generally recognized as informative in such settings. Nonetheless, future research should attempt to replicate our findings in organizational settings, using complementary methodologies where possible. 7. Conclusion This study examined the participative process of setting goals in globally distributed SDVTs, highlighting how virtual team efficacy (VTE), a domain specific form of collective efficacy, acts as an important antecedent to the SDVT goal-setting process. Specifically, VTE was found to influence goal commitment through the participatory process of setting specific and difficult goals. This finding was argued to have important theoretical and managerial implications. In terms of theory, the finding that goal specificity and difficulty mediate the relationship between VTE and goal commitment extends prior research finding a direct effect of externally set goals on goal commitment, yet no direct effect for participatively set goals. In terms of practice, the establishment of VTE as an antecedent to the SDVT goal setting process was argued to provide valuable organizational insight that can be used to develop training interventions for boosting VTE beliefs, thus improving the downstream participative goal setting processes of SDVTs. Goal difficulty was found to have a direct relationship with actual performance in addition to its indirect effect through goal commitment. This finding was argued to have additional theoretical and managerial implications by establishing a potential mediating effect of goal commitment beyond the moderated and direct effects often reported in the literature. 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