Essay from the year 2012 in the subject Business economics - Information Management, The University of Malaya, language: English, abstract: Problem statement: Although, literature proves the importance of the technology role in the effectiveness of virtual Research and Development (R&D) teams for new product development. However, the factors that make technology construct in a virtual R&D team are still ambiguous. The manager of virtual R&D teams for new product development does not know which type of technology should be used. Approach: To address the gap and answer the question, the study presents a set of factors that make a technology construct. The proposed construct modified by finding of the field survey (N = 240). We empirically examine the relationship between construct and its factors by employing the Structural Equation Modeling (SEM). A measurement model built base on the 19 preliminary factors that extracted from literature review. The result shows 10 factors out of 19 factors maintaining to make technology construct. Results: These 10 technology factors can be grouped into two constructs namely Web base communication and Web base data sharing. The findings can help new product development managers of enterprises to concentrate in the main factors for leading an effective virtual R&D team. In addition, it provides a guideline for software developers as well. Conclusion: The second and third generation technologies are now more suitable for developing new products through virtual R&D teams.