A leading member of a virtual construction management services company (VCMSC) networks with two or more special system contractors (SSCs) that supply the same building systems (e.g., structural building frames), modules (e.g., office rooms), products (e.g., windows), functional elements (e.g., indoor climate), or other services (e.g., life-cycle services). The profitable performance of a VCMSC’s network is endangered without internal competition. Networked members and external suppliers are motivated to add value-for-client money through their system knowledge and product expertise, whereas the leading member focuses on enhancing CM expertise and processes in part within its staff pool.
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).