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

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e-<strong>business</strong> models <strong>for</strong> <strong>virtual</strong> <strong>organizations</strong><br />

network of alliances. While there are many different classifications<br />

of these models within the literature there is no single,<br />

comprehensive taxonomy and so here we offer our own view of<br />

some of the generic <strong>for</strong>ms of <strong>virtual</strong> organization models. These<br />

include <strong>virtual</strong> face, coalliance, star alliance, value alliance,<br />

market alliance, <strong>virtual</strong> broker and <strong>virtual</strong> space.<br />

Selecting the structural and strategic <strong>for</strong>ms of <strong>business</strong> model<br />

will effectively set the strategic agenda <strong>for</strong> the <strong>virtual</strong> organization<br />

and define the relationships, roles, <strong>business</strong> processes and<br />

partnerships which should be exploited.<br />

3.2 The contemporary context <strong>for</strong><br />

organizational change<br />

Virtual <strong>organizations</strong> are best understood as electronically<br />

networked <strong>organizations</strong> transcending conventional boundaries<br />

with linkages both within and/or between <strong>organizations</strong>. In its<br />

simplest <strong>for</strong>m, however, <strong>virtual</strong>ity exists where IT is used to<br />

enhance organizational activities while reducing the need <strong>for</strong><br />

physical or <strong>for</strong>malized structure. Degrees of <strong>virtual</strong>ity then exist<br />

which will reflect:<br />

� the <strong>virtual</strong> organizational culture (strategic positioning);<br />

� the internal and external networks (the intensity and nature of<br />

links between stakeholders);<br />

� the market (IT dependency and resource infrastructure, products,<br />

customers).<br />

3.2.1 Culture<br />

We define culture as shared values and beliefs (Schein 1990).<br />

Organizational cultures that are accepting of technology, highly<br />

decentralized, and change oriented are more likely to embrace<br />

<strong>virtual</strong>ity and actively seek these opportunities both inside and<br />

outside the organization. Virtual culture results from a perception<br />

of the entire organization and its operations held by its<br />

stakeholder community.<br />

This is operationalized in choices and actions which result in a<br />

feeling of unity with respect to value sharing (i.e. each client’s<br />

expectations are satisfied in the product accessed), and time–<br />

space arrangement (i.e. each stakeholder shares the feeling of a<br />

continuous access to the organization and its products). The<br />

embodiment of this culture comes through the <strong>virtual</strong> strategic<br />

perspective (VSP) which the organization adopts. Its value<br />

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