Knowledge transfer in virtual settings: the role of individual virtual competency Yinglei Wang* & Nicole Haggerty † Information Systems, Richard Ivey School of Business, The University of Western Ontario, London, ON, Canada, N6A 3K7, *email: ywang@ivey.uwo.ca and † email: nhaggerty@ivey.uwo.ca Abstract. Economic forces, competitive pressures and technological advances have created an environment within which firms have developed new ways of organizing (e.g. virtual work settings) and managing their resources (e.g. knowl- edge management) in order to maintain and improve firm performance. Extant research has highlighted the challenges associated with managing knowledge in virtual settings. However, researchers are still struggling to provide effective guid- ance to practitioners in this field. We believe that a better understanding of individual virtual competency is a potential avenue for managing the complexity of knowledge transfer in virtual settings. In particular, we suggest that optimal knowl- edge transfers can be achieved by individuals armed with the right personal capabilities and skills for virtual work, particularly when those knowledge transfers are emergent, bottom-up and cannot be specified a priori. The virtual competency exhibited by individuals can be the key to overcoming the constraints of knowledge transfers with such characteristics because underlying competency can facilitate effective action in unfamiliar and novel situations. In this conceptual research, we develop a theoretical model of individual virtual competence and describe its role in the communication process, which underpins effective knowledge transfer in virtual settings. Additionally, we consider the antecedent role that prior experience in virtual activity plays in aiding workers to develop virtual competence, which in turn engenders effective knowledge transfer. We conclude with implications for future research and for practicing managers. Keywords: virtual organization, computer-mediated communication, knowledge management, knowledge transfer, competence INTRODUCTION Several environmental factors have driven firms to change the way they organize the work- place (Igbaria, 1999; Saunders, 2000). Managing increasingly complex tasks, coordinating outsourcing arrangements, responding to globalization – these activities all require flexible and doi:10.1111/j.1365-2575.2008.00318.x Info Systems J (2009) 19, 571–593 571 © 2008 The Authors Journal compilation © 2008 Blackwell Publishing Ltd