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What is Extended Enterprise

Encyclopedia of Networked and Virtual Organizations
The entire set of companies (or their parts) that work together to bring value to the marketplace. Members view their destinies to be interdependent which distinguishes the extended enterprise from other loose confederations of buyers and suppliers.
Published in Chapter:
Managing the Dynamic Reconfiguration of Enterprises
Ben Clegg (Aston University, UK) and Mario Binder (Aston University, UK)
Copyright: © 2008 |Pages: 9
DOI: 10.4018/978-1-59904-885-7.ch116
Abstract
Due to environmental changes and business trends such as globalisation, outsourcing and virtualisation, more and more companies get involved in business activities that are outside their direct control. This typically occurs by entering into collaborative relationships and joint ventures with specialised companies in order to fulfil the demands of customers quickly (DiMaggio, 2001). Organisational structures that results from such collaborative relationships and joint ventures are referred to in this paper as enterprises and the management of them known as enterprise management. The authors use the definition of the European Commission (2003) that defines an enterprise as “… an entity, regardless of its legal form … including partnerships or associations regularly engaged in economic activities.” Therefore in its most simple form an enterprise could be a single integrated company. However, findings from this research show that enterprises can also be made up of parts of different companies and the structure of the enterprise is contingent upon a variety of different factors. The success of the enterprise as a collaborative venture depends on the ability of companies to intermediate their internal core competencies into other participating companies’ value streams and simultaneously outsource their own peripheral activities to companies that can perform them quicker, cheaper, and more effectively (Lal et al., 1995). In other words, the peripheral activities of one member-company must be complemented by a core competence of another member-company within an overall enterprise.
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Human Resources Outsourcing Strategies
A concept that includes the firms as well as the stakeholders (suppliers, distributors, partners and so on)
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A Holistic Model for Linking Sustainability, Sustainable Development, and Strategic Innovation in the Context of Globalization
The extended enterprise includes the contributors to the solutions and recipients who use the solutions. It includes customers, stakeholders, supply networks, strategic partners, related industries, competition, and infrastructure. It provides a framework for a descriptive, analytical, and structural understanding of the needs, opportunities, challenges, requirements, specifications, and the strategies and action plans.
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Extended Enterprise Integration vs. Market B2B Integration
A collection of legal entities (N ³ 2) that pursue repeated, enduring exchange relations with one another.
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Enterprise Resource Planning (ERP) Systems and Multi-Organizational Enterprise (MOE) Strategy
Semi-permanent group of parts of different organizations working towards joint strategic objectives. Extended enterprises (EEs) tend to be lean and agile based on technical and social competence.
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