virtual corporation

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Virtual Corporation

The act in which independent companies work together as an association to accomplish mutually beneficial goals. Virtual cooperation is temporary and may be used for only a single project. However, for the duration of the project, the companies act as if they were a single corporation.

virtual corporation

a firm which minimizes its internal hierarcy and maximizes its dealing with outside (i.e. market) suppliers and customers. Given today's rapidly changing technological and competitive conditions a firm needs to be more flexible in responding to changing business circumstances. To this end the firm should avoid VERTICAL INTEGRATION (and its associated AGENCY COSTS) and OUTSOURCE inputs as much as possible and deal only with independent distributors and dealers, using such new technologies as E-COMMERCE to reduce external TRANSACTION COSTS. See VERTICAL DISINTEGRATION.
References in periodicals archive ?
His firm and Japan Acoustic Lab, run by acoustics expert Matsumi Suzuki and known for authenticating voice recordings such as those of Osama bin Laden, set up a virtual company called Japan Ringing Tone Laboratory to analyze pictures of people of the past and, so to speak, re-voice the dead.
Another new feature offers virtual company support whereby service providers can now deploy multiple branded operations while seamlessly managing all of the revenue flows and settlements for the branded offerings across the enterprise.
Once the virtual company has accomplished its primary objectives, it will generally terminate relationships among its current set of partners and establish new outsourcing relationships to pursue alternate goals (Christie & Levary, 1998).
We're a virtual company,'' said Paul Buss, 37, the firm's president and co-founder, who works out of his home in Dallas.
A virtual company is growing rapidly as it links employers with temporary or project-based independent contractors.
com is a good example of a virtual company successfully adopting some of the traditional business functions.
We're changing from a traditional company to a virtual company," says Juan Izcue Elgart, a 35-year-old marketing manager at CB Capitales who initiated the idea a few years ago and is now running the service.
Herein, lies the value of the virtual company and virtual systems.
The key assets of a virtual company could simply be human resources or human capital," said Wallman.
In the article, "The CEO Wears PJ's", M2W breaks down some common issues and provides helpful tips to handle the inevitable obstacles that come with being a virtual company.

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