The Virtual Corporation and Trust: Balancing Between Identity and Innovation

Abstract

Virtual corporations are seen as new organisational forms to ensure knowledge sharing and innovation. In this chapter the reason for the knowledge-creating competence of virtual corporations is explained. A shared identity and mutual trust of the participants are of paramount importance to innovation. Virtual corporations are in fact balancing on a tightrope. They have to create an identity which is strong enough for the participants to trust each other. At the same time the identity shared by the participants of the virtual corporation must not become so strong that very promising innovative avenues are blocked. ICT will fulfil an important function here which is mainly aimed at the support of the social relation between the participants.