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 ?
Pittsburgh, provides "hands-on" experience running a virtual corporation.
3 Manchester, Philip, "Rise of the Virtual Corporation - The Question Is Not Yet, But When?
Delayering and team-based systems: Another major trend in virtual corporations is the reported shift away from hierarchical structures of management.
A virtual corporation must form cross-company teams focused on specific processes.
The new training programs of the virtual corporation may offer a softer and more humane visage to its employees, but it will not offer any soft jobs.
Born from the need for excellent service, a virtual corporation is a collection of companies that come together for a project, then go their own ways after the contract has run its course.
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.
Stepping through the electronic doorway, the communicator finds himself or herself in the virtual corporation and the glass house of transparent communication.
Contractor relations are vital to any company operating as a virtual corporation.
TO PROSPER IN THE GLOBAL marketplace, today's businesses are pioneering a new kind of allied force--the virtual corporation.
Virtual Corporation, a software and consulting services company that assists DoD and other Federal agencies to implement sustainable continuity of operations (COOP) and information technology disaster recovery (IT-DR) programs, announced today that it has been awarded a DoD wide Blanket Purchase Agreement (BPA) for the Enterprise Software Initiative to provide Disaster Recovery Software Solutions.
The virtual corporation of the future will integrate large, medium and small service partners and customers seamlessly and in real time through a service management hub in the cloud to respond quickly to changing business conditions.

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