A virtual organization (VO) is a form of the organization, at which legally independent enterprises and/or also individuals unite virtually (usually over Internet) for a certain period to a common business group. Opposite third and/or clients the virtual enterprise arises like a uniform enterprise. Is not by the the physical location of the individual participants of importance. To optimize to achieve it here tries the creation of value chain by cooperative co-operation of partners with specific core authority and by it particularly customer-oriented and competitive achievement production. 1) Come to the information and communication technology (IKT) in this connection elementary meaning, since they make the demanded overcoming possible of space and time only. 2)

Characteristics

The characteristics of the virtual organization are flexibility, no direct communication and customer orientation. Virtual enterprises cooperate without for it an enterprise to base to look for a location to adjust personnel and develop an organization. Temporally limited market potentials are used by co-operation. Contrary to other co-operation like e.g.: One does to Joint venture without institutionalizing of central management functions. It comes to no specialization on a subrange of the creation of value chain, but the whole chain can be covered. Individual subprocesses are distributed on the co-operation partners depending upon core authority and worked on then decentralized. The virtual organization is suitable particularly for the production of solutions for the individual customer, since for mass production traditional organization forms are better suitable.

Legal classification

Since it concerns at virtual organization only the union legally independent participant, no company form develops. Co-operation takes place usually only after achievement bilateral contracts. The civilian, society and tax law must find only suitable forms for the usually international and fast changing co-operation of the virtual organizations. 4)

Pro and cons

As large advantage above all the enormous cost saving potential must be called here that from the omission of the space, organization and/or travel expenses results. It would be to be adjusted by traditional forms of business organization not possible as well and flexibly as with virtual organizations to new market requirements in a dynamic surrounding field. Since each participant brings in his core authority, it comes to a very efficient result of working. The moreover by co-operation the market exploitation costs are divided and lowered market entrance barriers.

Often only the advantages of this organization are seen, but with more exact view the flexible, loose project-oriented structure of the virtual organization is exposed to several sources of danger. The loose organization is difficult to control. By strong dependence between the partners it can occur that individual partners use these for their own advantage. (e.g. passing on from confidential data third.) sanctions for such participants are only difficult to intersperse. Therefore it is to be entered advisable virtual organization only with "trustworthy "and/or business partners of many years.

Also for the coworkers it can come to problems. They can develop only with difficulty an affiliation feeling and identify themselves with the enterprise. The moreover one it may be doubted that all communication can be accomplished completely virtually. In addition the total dependence on a fully functional information and communication technology must be regarded as disadvantage.

Kinds

Strategic alliance

bundling of capacities during critical product development

achievement of scale effects by higher market shares or technical synergies

Outsourcing

misalignment of whole functional areas to a special offerer

complete transmission from responsibility and obligation to the achievement contribution

Franchising

co-operation between manufacturers and independent enterprises

selling of goods or services under a uniform marketing concept

Joint venture

of two or several enterprises based and strategically led enterprise

in all rule same financial participation (e.g. to the dispersion risks/costs)

Consortium

enterprise connection on contractual basis to the completion of exactly defined projects

frequent for the realization of large-scale projects

Virtual enterprises

utilization of temporally limited market potentials by co-operation

renouncement of institutionalizing central management functions

Areas of application

• Grid Computing
• Union of experts, who are resident in the most diverse countries in the world, to an expert pool.
• Co-operation on markets with high product complexity and market uncertainty
• Development of an open SOURCE of operating system e.g.: Linux

Sources of literature

1. See Mowshowitz, A. 1986
2. vgl (Hakansson/Johanson 1998)
3. see Gora/separate 2001
4. see Gesmann - Nuissl 2001
5. see Picot, A.; Realm forest, R.; TIG and, R.T., the boundless enterprise, Wiesbaden 2003
6. see Fimmen, P.; Virtual enterprises - innovative strategies for the internationalization of KMU, Saarbruecken 2005

Articles in category "Virtual organization"

We found here 5 articles.

Related Websites

We found here 3 related websites.

• Virtual Organization as Process
  There are four key characteristics of virtual organization as process. ... Understanding virtual organization as process entails a focus on how ...


• Virtual Organization Net
  Focused on theoretical and empirical research related to Virtual Organizations, Virtual Teams, Network...


• virtual teams
  Leadership in Virtual Teams and Organization. ... Current work in virtual organizations includes teaching online courses in business and technology, ...