Identification is a person's sense of belonging with a social category. Identification in virtual organizational teams is thought to be especially desirable because it provides the glue that can promote group cohesion despite the relative lack of face-to-face interaction. Though research on virtual teams is exploding, it has not systematically identified the antecedents or moderators of the process by which identification develops, leaving a number of gaps and apparent contradictions. The purpose of this paper is to begin to untangle the contradictions and address some of the gaps by tracing the mechanisms and moderating processes through which identification develops in hybrid and pure virtual settings, and the ways that these processes differ from face-to-face settings.

This study examines the interactive effect of technological intensiveness and top management group (TMG) pay disparity on firm performance. Drawing on two literatures—task interdependence and group rewards—we argue that: (a) technological intensiveness imposes a considerable requirement for multiway information processing and collaboration among senior executives of a firm, and (b) collaboration is diminished when large pay disparities exist. Hence, TMG pay disparity should be more detrimental to subsequent performance of high-technology firms than low-technology firms. We construct seven different measures of executive pay disparity based on three major types of pay disparity (vertical, horizontal, and overall) and use a proprietary data set to test our hypotheses. The results provide consistent support for our hypotheses, thereby suggesting important implications for scholars and designers of executive compensation.