How virtual reality influences collaboration performance: a team-level analysis

Purpose: In the wake of the COVID-19 pandemic, the interest in the use of virtual reality (VR) for organizational collaboration has dramatically increased. However, empirical research on the optimal types of VR and avatar designs for effective collaboration remains limited. To address these gaps, this study investigates how VR types (immersive vs non-immersive) and avatar similarity (high vs low) impact collaboration performance, with a focus on the mediating roles of somatic, psychological and behavioral engagement. Design/methodology/approach: Drawing on embodied cognition theory and grounded in user engagement theory, we developed a research model that delineates the factors influencing collaboration performance. This model was empirically tested with data collected from a laboratory experiment involving 195 participants, employing a 2 × 2 factorial design. The Engage VR was used for the experiment because it supports the same virtual environment for collaboration between immersive and non-immersive VR contexts. The data were analyzed at the team level (n = 65). Findings: The results of this study reveal that both immersive VR and high avatar similarity significantly enhance collaboration performance by augmenting somatic engagement, which subsequently boosts psychological and behavioral engagement. Originality/value: This research deepens the scholarly understanding of the intricate interplay among VR types, avatar design and user engagement. The study’s theoretical implications underscore the conceptualization of somatic engagement as a critical dimension of user engagement in virtual collaboration, enriching the extant literature on VR-based collaboration. It also provides pragmatic insights to enhance virtual collaboration in the workplace.