Purpose - This
article reports on a qualitative, interpretivist case study to gain a
deeper understanding on purpose establishment during the implementation
of effective virtual teams within the software section of the technology
industry of South Africa. Virtual teams are common in the technology
industry, a strategic contributor to wealth creation, sustainable
organisations and competitiveness.

Design/Methodology - A purposive sample was selected, and data were
collected through an electronic questionnaire and analysed by means of
content analysis.

Findings - Empirical evidence suggested that, because of flexibility,
traditional management practices may not be effective in virtual teams
any longer. A formal pre-existing electronic management system,
networking and an alternative orientation towards technology, enhance
team performance, effectiveness and competitiveness werefound to be
prerequisites for successful implementation of virtual teams in an
organisation.

Limitations - The study is limited to the software section of the
technology industry of South Africa only. The themes however may be
replicated in other organisations.

Contribution - This study contributes to the emerging body of knowledge
on the effective functioning of virtual teams and labour relations
orientation.