Managing technology as a virtual enterprise
In a virtual company, members form a network, thereby enabling projects to be pursued by combining member’s resources. Specific assets of a virtual company are its flexibility and ability to handle variety. Costs of co‐ordination and motivation are lowered if the virtual company succeeds in building trust and commitment. On the other hand, lack of these pose severe problems.
In markets with a strong scientific‐technological basis and rapid rate of change the concept of a virtual organization seems appealing. High R&D costs and risks can be shared, developments and time‐to‐market can be accelerated and the partners can concentrate on their respective core competencies.
In the paper we use an example from the biotechnology industry as a case study and discuss some of the theoretical and practical problems that are encountered in the virtual enterprise.
Document Type: Original Article
Affiliations: 1: University of Lüneburg, Department of Business Administration, Faculty of Economics and Social Sciences, Germany, [email protected]‐lueneburg.de. 2: University of Twente, [email protected] 3: R&D Research Unit, Manchester Business School, UK, [email protected] 4: Otto Beisheim Graduate School of Management, Koblenz, Germany., Email: [email protected]
Publication date: 2001-07-01