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 ?
The combination of Virtual Corporation and BSI joins two of the most well-respected global leaders in the business continuity industry," said Scott W.
Executives on the panel felt that the notion of a virtual corporation is more welcome at European than American companies.
Virtual Corporation then compiles this evaluation data for usage in its benchmark analyses that measure business continuity as a whole and serve as the basis for making comparisons.
In the field of telecommunications, for example, a mobile, virtual corporation was created by EDS, Sprint, and Sun Microsystems to manage the security, press, administration, and public information systems for the World Cup.
Those foundries that are taking on the responsibility of higher value-added and product-critical services such as engineering, design, testing, machining and assembly are progressing toward a higher level in the value chain and a more influential and controlling position in the virtual corporation.
Colin Price, a partner at Price Waterhouse and author of a recent study about virtual corporations, claims that the trend toward the virtual corporation is the continuation of a process that began 20 years ago.
Downsizing: If there is any single trend that most of us associate with the growth of these virtual corporations, it is downsizing.
The Department of Veterans Affairs needed a tool that was not only flexible and powerful, but one that the user community is comfortable with," said Scott Ream, President of Virtual Corporation, "and the SP software can be modified without programmer support to suit the users and operations processes, instead of having to make changes to the organization to fit the tool.
The release of the Spanish BCMM(R) is part of our ongoing effort to address the rapidly growing interest shown by the international community through their access to the BCMM(R)," Margaret Langsett, Executive Vice President, Virtual Corporation, stated.
In the future, communicators may find themselves essential links in the more loosely constructed virtual corporation.
It is clear, however, that the virtual corporation can create a risky array of bedfellows.
Scott Ream, President of Virtual Corporation, stated, "We are delighted to have been selected for this important DoD BPA which enables Virtual Corporation to support all government and DoD components.

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