virtual corporation(redirected from virtual company)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
virtual corporationa 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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson