Improving Virtual Team Performance: An Empirical Approach D. Radoiu (1) , C. Enachescu (1) , H. F. Pop (2) (1) Department of Mathematics and Computer Science Petru Maior University, Târgu Mures Romania (2) Faculty of Mathematics and Computer Science Babeş-Bolyai University, Cluj-Napoca, Romania ABSTRACT Increased performance is the key reason for developing software with virtual teams but the research efforts to date are limited. Difficulties for a formal, generic approach are multiplied by the significant differences between how small and large software organizations react to changing operational conditions and act to increase performance. The aim of the paper is to provide the guidelines on how to analyze small virtual team software development process performance using the workflow model and meaningful measurable elements which provide more insight into the process. The purpose is to improve small virtual team performance by obtaining knowledge about problem areas and cooperation issues which affect the operational efficiency. A limited quantitative survey was used to test the conceptual model and hypotheses of the study. The preliminary results indicate that such an approach works, that organizational issues are as important as the technical ones and that the virtual team performance depends critically on communication. Keywords: Virtual team, empirical approach, operational efficiency. 1. Introduction Continuing developments in software development have led to new organizational forms that are more flexible and responsive. One of the fundamental components of these new organizational forms is the virtual team. Virtual teams are usually distributed, both geographically (different countries) and organizationally (different companies). To successfully complete a project, virtual team members need to share/exchange information of all kind. Typically, the Internet is used as an infrastructure and the project is managed using so called workflows and synchronous/asynchronous communication (e.g. e-mail messages, phone, instant messages). The workflow ensures the logical progression of work across the virtual team and can be monitored and visualized using different tools. The success of the project depends not only on how well each virtual team member/party executes its part of the work but on how the virtual team operates like one. Virtual teams, due to their limited life span and cross-functional or cross-organizational membership, may be unable to quickly reach maximum efficiency and therefore coordinating the work, quickly and accurately pinpointing problem areas becomes more critical. As a consequence, interest in how to improve collaboration in global virtual teams is growing [Duarte D.L. and Snyder N.T.(1999), Lipnack J. and J. Stamp J. (1997)]. 1