Virtual organization

Virtual organization is often associated with such terms as virtual office, virtual teams, and virtual leadership. The ultimate goal of the virtual organization is to provide innovative, high-quality products or services instantaneously in response to customer demands. The term virtual in this sense has its roots in the computer industry.

Virtual organization

Virtual is usually taken to be something that does not exist in reality. So a typical definition of a virtual corporation taking the dimension of time is: Here a typical definition is: A virtual corporation is a specific example of a networked organisation.

The Star Alliance is such an example from the field of air travel. As well as such large alliances, small and medium companies, in particular, can benefit by being part of a virtual corporation or network.

This gives them the benefits of the resources of a large organisation while retaining the agility and independence of a small one.

What follows can apply at all these levels, although it is written mainly from the perspective of the last example the inter-organizational network. Benefits Gives access to a wide range of specialized and knowledgeable resources - wherever they reside Opens up a range of business opportunities which individual participants would not have the means to address individually Can present a unified face to external stakeholders, e.

The development of business networks as virtual corporations was well developed in Denmark in the early s see example belowand has since evolved in other countries. It has combine forces with other organization to create Virtual organization knowledge teams working on transnational projects, or in putting together bids using complementary skills for large corporations, according to the client needs at the time.

Succeeding Virtually Working in virtual corporations comes naturally to small company entrepreneurs and managers who are effective networkers. They are difficult for those with the conventional corporate mind to fathom out.

Some of the ingredients for developing Virtual organization succeeding virtual corporation are: Each partner must have some distinctive added value to bring to the corporation Members must develop high degree of mutual trust and understanding.

Thus, very often the same people will work together again and again. Projects should be the focus of the corporation.

Usually they will be for clients, but some projects e.

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Thus either one member of the virtual corporation must act on behalf of the others using them as subcontractors or create a joint company to act as their contracts and administration service.

In bringing together many virtual corporations, the role of a network broker can be important. However, in our experience many virtual corporations will evolve naturally out of working relationships that have developed over years.

Examples Here are some examples of virtual organizations and business networks in practice. The take up was dramatic with over 25, small and medium enterprises participating in over 1, networks by the mids. The three key ingredient were 1 a regional network centre to stimulate the formation of networks; 2 a support infrastructure to provide advice, some financial support, and various marketing services; and 3 a network broker.

Virtual organization

The latter role proved crucial in helping interested members identify suitable partners and bringing them together in a cohesive way.

Visa - Although Visa is an internationally known brand name, it is not like a conventional organization.


Its founder Dee Hock refers to it as "an invisible organization". It is really a network of independent card issuers such as banks across the globe, but collaborating together to provide a seamless operation for card users.

There is a core of central principles and rules that members must follow such as protecting the brandbut otherwise it is a highly decentralized network where individual members are free to develop certain products, set their own pricing and do their own marketing under the Visa banner.

It is owned and controlled by its members. As its website say "we are not a bank, nor a credit card company". Agile Web, Pennsylvania - This was an early example of 21 smallish engineering companies coming together to bid for customer contracts.

It described itself as "a new corporate entity that brings together diverse capabilities, complementary skills and entrepreneurial innovativeness from an array of well-established companies to provide a totally integrated capability for fast-response product design and manufacturing. A key part of its philosphy is trust between its members and therefore it put great emphasis on a set of ethical principles to which all participants had to subscribe.

The Trust Group - This is a network of some IT consultants whose members are mostly individual contractors. Founded in it describes itself as an "e-business that conducts the vast majority of our day to day operations through the Internet and are therefore ideally placed to offer real-world advice and solutions.

Like other virtual networked organisations, it is run by its members for its members. Further Reading Interestingly, this seems a field where the most significant material was written in the s, when working virtually was something of a novelty. Though often out of print, used editions are often for sale on Amazon.

Although examples change, the core principles remain. In this book, the emphasis is on working virtually in globally dispersed teams. This explores in depth many of the key ingredients of successful virtual teams, such as purpose, participation, process and trust. Virtual Organizations and Beyond, Bo Hedberg et.

The Virtual Corporation, W. Creating the Collaborative Enterprise, David J.This new form of organisation, i.e., ‘virtual organisation’ emerged in and is also known as digital organisation, network organisation or modular organisation. Simply speaking, a virtual organisation is a network of cooperation made possible by, what is called ICT, i.e.

Information and. activities of the organization (production, marketing, finance, human resources, research and development, public relations) in a virtual environment. Increasingly used of internet, networking and. A network of salespeople is the most common example—so ordinary and everyday an example that we would not think of giving it such a grandiose title as a virtual organization.

The only blog in the world about "virtual organization management" and the world of "virtual organizations"::The New Virtual Organization World. A virtual organization or company is one whose members are geographically apart, usually working by computer e-mail and groupware while appearing to others to be a single, unified organization with a real physical location.

Use 'virtual organization' in a Sentence In today's high tech, internet based world, more and more businesses are merely virtual organization s. Often times a .

What is virtual organization? definition and meaning -