The theme of This paper is the role of virtual collaboration process in organization. Business environment that constantly changing and high level of intensive competition force organizations to continously creating sustainable values in to gain competitive advantage. For large organizations with wide range of networks there are geographical limitations that restrict the process of collaboration in organization. Advances in technology enable and facilitate the organization to collaborate virtually. From the perspective of dynamic capabilities, virtual collaboration conceptualized as the dynamic changes in the organization's ability to identify, integrate, and apply knowledge assets as learning materials to meet the competitive demands. Here, Virtual collaboration enables the process of communication and coordination within organization, support oragnization learning proces and also trigger innovation. At the end, Virtual Collaboration support decision making processes and process improvemet internally. Results of the analysis in this paper suggests that engagement, transparency and horizontal nature of the communication process that can encourage new organizational learning but, can be done only for new business portfolio. In addition, cultural factors, also limits the success of virtual collaboration as means for information distribution at lower levels of the organization.