[8] 2002 e-business-strategies-for-virtual-organizations

e-Business Strategies for Virtual Organizations
activities of disparate components of the virtual organization,
IT becomes a key component, rather than the distinguishing
characteristic.
The position adopted in this chapter corresponds to the second
approach discussed, and as a precursor to more detailed
discussion, a virtual organization can be defined as ‘composed
of several business partners sharing costs and resources for the
purpose of producing a product or service . . . can be temporary
. . . or it can be permanent. Each partner contributes complementary
resources that reflect its strengths, and determines
its role in the virtual corporation’ (Turban et al. 1999: 142). This
stance suggests a need to discuss more fully the essential and
fundamental attributes of the virtual organization.
2.2.3 The hybrid VO
The third approach with respect to the virtual organization is
perhaps the most confusing. This approach represents an
amalgam of the previous two approaches, where authors move
almost interchangeably between the virtual organization as an
electronic or online organization, and the virtual organization
as a somewhat transient network of people, ideas, competencies
and resources which come together for a particular
purpose.
2.3 The collaborative VO as the agile
contender
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A key characteristic of the virtual organization is its adaptability
and flexibility in the face of turbulent business environments, a
condition sometimes described as ‘agility’. Virtual organizations
are capable of rapid and adaptable response to changing
markets whether these arise as a result of globalization,
changing cost structures, changing customer needs and wants,
or other similar reasons. Virtual organizations use existing
organizational structures from one or more existing organizations,
combining these in creative ways to forge new organizational
capabilities and competencies, thus averting the need to
recruit, train, and forge new work teams, buy new equipment
and buildings, and work through a period of organizational
learning. Thus, allied with its agility, an important attribute of
the virtual organization is argued to be its more effective
utilization of existing resources, thus creating an important
source of competitive advantage.