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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Das Modell der "Virtuellen Unternehmen" [The model of "virtual corporations"].
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.
* Virtual Business Park - "House" business resources on the Net to help companies rapidly create virtual corporations, as in Bell South's "Media Park," which provides resources for the creative community.
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.
By operating as a virtual corporation (outsourcing selling, manufacturing, and distribution), the company greatly reduced overhead costs.
At the very heart of this transformation is the development of what many are calling the "virtual corporation," the "virtual office," maybe even the "virtual worker."
* a virtual corporation of strategic alliance partners with a vested interest in the programme's success managed by a core Ore-Ida staff of four.
And when government becomes a bottom-line operation--a form of "virtual corporation"--along the lines of Molson's, IBM or Viacom, money becomes the only standard of worth, and money, as we well know, knows no borders and brooks no ideas of cultural distinction.
To keep software development costs low, Wooten says he has created a virtual corporation. "In this business, it's not always necessary to have an in-house staff.
Buzzwords like "business re-engineering" (Hammer and Champy, 1995); "fractal and modular factories" (Fraktale Fabrik, Modulare Fabrik) (Warnecke, 1993; Wildemann, 1992), or "virtual corporation" (Davidow and Malone, 1993); and "atomized organization" (Atomisierte Organisation) (Ryf, 1993), arouse academic curiosity and render these concepts attractive to their would-be users in business and management consultancy.

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