[8] 2002 e-business-strategies-for-virtual-organizations
[8] 2002 e-business-strategies-for-virtual-organizations
[8] 2002 e-business-strategies-for-virtual-organizations
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Characteristics of the <strong>virtual</strong> organization<br />
<strong>virtual</strong> organization members, and an acceptance and understanding<br />
that risk is to be shared amongst those standing to<br />
benefit.<br />
Some caution needs to be exercised at this point, <strong>for</strong> the <strong>virtual</strong><br />
organization and <strong>virtual</strong> organizing should not be presented as<br />
the way of the future, almost akin to a <strong>business</strong> imperative <strong>for</strong><br />
the successful enterprise in this internetworked era. Many of the<br />
characteristics, <strong>strategies</strong> and claims <strong>for</strong> the <strong>virtual</strong> organization<br />
are conceptually appealing. Yet there seems to be a range of<br />
challenges <strong>for</strong> managers to nurture a successful <strong>business</strong> within<br />
the conceptual framework of <strong>virtual</strong> organizing, and we shall<br />
return to this issue in Chapter 11 below. It would seem, prima<br />
facie, that many of the strengths and powerful characteristics of<br />
the <strong>virtual</strong> organization also tend to render it vulnerable, and<br />
hence can be a source of weakness. Table 2.2 displays some of<br />
these tensions that would support this thinking.<br />
The type of innovation involved and the associated in<strong>for</strong>mation<br />
flows and knowledge management <strong>strategies</strong> can also enhance<br />
or moderate the likely success of the <strong>virtual</strong> organization.<br />
Autonomous innovations (basically stand-alone, independent of<br />
Table 2.2 Inherent tensions in behaviours of the <strong>virtual</strong> organization<br />
Strengths How strengths become weaknesses<br />
Opportunistic,<br />
entrepreneurial, risk<br />
taking<br />
Mutual trust, shared<br />
risk, opportunistic<br />
Personal incentives and rewards <strong>for</strong><br />
risk taking increase, leading to<br />
self-interest in behaviours, etc., making<br />
coordination and cooperation amongst<br />
parties more difficult.<br />
When conflicts or misunderstandings<br />
do arise, or un<strong>for</strong>eseen opportunities<br />
work to favour some of the parties<br />
more than others, there exist few<br />
established procedures <strong>for</strong> negotiation<br />
and conflict resolution.<br />
Opportunistic The spirit that drives parties to<br />
collaborate may also cause <strong>virtual</strong><br />
<strong>organizations</strong> to fragment if one or<br />
more of the parties deliberately act to<br />
exploit more benefits <strong>for</strong> themselves<br />
than <strong>for</strong> the other parties.<br />
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