TY - JOUR

T1 - Managing technology as a virtual enterprise

AU - Weisenfeld, Ursula

AU - Fisscher, Olaf

AU - Pearson, Alan

AU - Brockhoff, Klaus

PY - 2001/7/1

Y1 - 2001/7/1

N2 - The complexity of R&D projects and growing international competition are factors leading to more cooperation especially among small and medium-sized firms. But even large integrated firms are often not willing or able to perform the necessary amount of R&D and to cope with the uncertainty associated with radical innovations. 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.

AB - The complexity of R&D projects and growing international competition are factors leading to more cooperation especially among small and medium-sized firms. But even large integrated firms are often not willing or able to perform the necessary amount of R&D and to cope with the uncertainty associated with radical innovations. 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.

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=0035596086&partnerID=8YFLogxK

U2 - 10.1111/1467-9310.00220

DO - 10.1111/1467-9310.00220

M3 - Journal articles

VL - 31

SP - 323

EP - 334

JO - R&D Management

JF - R&D Management

SN - 0033-6807

IS - 3

ER -