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

e-Business Strategies for Virtual Organizations
Figure 3.1
Virtual organizations and
virtual cultures
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derives from the ability to operate with diminished constraints
of space and time, yielding opportunities for expansion of reach
with marked reduction of transaction costs.
3.2.2 Networks
Networks are groups within and between organizations where
communicative relationships are integral to the existence of a
virtual entity. However, the simultaneous need to establish
alliances and retain a particular identity creates a tension
between autonomy and interdependence, competition and
cooperation. These relationships are often described as value
added partnerships based on horizontal, vertical or symbiotic
relationships. These in turn relate to competitors, value chain
collaborators and complementary providers of goods and
services all of whom combine to achieve advantage over
outsiders. The nature, strength and substitutability of links
define the inherent advantageous structure.
3.2.3 Markets
Markets differ from networks in that pricing mechanisms
coordinate them. In this respect, the electronic market is one
where any buyer or seller can interconnect with a network to
offer wares or shop for goods and services. Hence, ubiquity is by
definition a prerequisite.
Different risks arise from being a market maker and a market
player, and different products also carry different risks. Criteria
for successful electronic market development include products
with low asset specificity, ease of description and a consumer
willing to effect transactions by means of networks. Necessarily,
E-market culture
E-business culture
Virtualorganization culture