A VCMSC is a dynamic network of collaborating entities (e.g., special system contractors) that reconfigure around an organizational core whenever an opportunity arises. A single leading member guides a virtual network both on a short and long-term basis, members are geographically dispersed, and each member concentrates on those parts of the value chain with which it achieves the maximum added value.
Published in Chapter:
Virtuality Among Construction Management Services Companies
Wafa Alsakini (TKK Helsinki University of Technology, Finland), Juhani Kiiras (TKK Helsinki University of Technology, Finland), and Pekka Huovinen (TKK Helsinki University of Technology, Finland)
Copyright: © 2008
|Pages: 8
DOI: 10.4018/978-1-59904-885-7.ch244
Abstract
Changing market conditions and the fast development of information and communications technologies (ICT) have been the driving forces towards the virtualization of organizations (Franke, 2001). Today’s business environments are characterized as complex, uncertain, and interdependent. A virtual organization (VO) may be defined as “an entity that is capable of dealing with complexity and uncertainty through cooperation among members in a network that is managed like a single organization” (Saabeel et al., 2002). The goal is to create and nurture flexibility for meeting changing market conditions. In turn, this goal is attained by employing a core competence strategy (i.e., companies concentrate on what they do best), extending their value chains, and integrating many core competences of other stakeholders. The acquisitions and the development of all resources and capabilities needed for the exploitation of windows of future opportunities have become more time consuming and costly for many organizations that act on their own. Thus, VOs are being formed to exploit those opportunities where each member possesses different, but compatible knowledge, skills, and resources (Franke, 2001; Coulson & Kantamnen, 2003).