The virtual economy is changing the nature of business relationships according to BT Business research which found that 62% of British businesses have regular customers they have never met in person, and more than half have customers they have only ever contacted by email.
The research covered areas such as the importance of networking, the role of social media and the changing nature of collaborative working.
The survey also revealed that the 'new economy' is being driven by social media. More than half of those on Linkedin (54%) have accepted a LinkedIn request from someone they had never had any previous contact with, and three quarters have accepted a request from someone they have never met in person (73%).
This practice has led to new business opportunities in 39% of cases and a new business partnership in 31%.
But traditional methods of building business relationships are still going strong: 71% of new business leads still come from existing customers and clients, 38% through mutual friends and 31 per cent from attending networking events.
Similarly, face-to-face communication is still the most common method of internal collaboration in those companies surveyed, and the evidence suggests that employees would prefer to use it more given the option.
Danny Longbottom, MD, UK SME, said: "We see the ‘Virtual Economy' playing a major part in our customers' businesses on a daily basis, particularly when it comes to international trade and exporting among smaller and mid-sized businesses.
"It is interesting to see wider evidence of the cultural changes it brings. While this new way of working, driven by high speed internet access and associated new technologies like cloud applications, has numerous benefits, the results also provide some food for thought to businesses about the fundamental nature of people and how they work best.
"Technology is a facilitator, but face-to-face and telephone communication still have an important role to play, and people work and collaborate best when they are able to communicate in whatever way best suits their goals."
Dr Nicola Millard, head of customer insight and futures, BT Global Innovation Team, added: "There is one sophisticated piece of technology that hasn't been updated recently - and that's our brains.
"Our inner caveman still dictates a lot of our behaviour. That's why, despite thousands of technologies out there that will shrink distance, we do often still default to face-to-face.
"As we virtualise, there is a huge need to understand the dynamics of collaboration better as, in doing so, we can collaborate more effectively in both the real and virtual world and move from 'networking' to 'net-working' for future business success."