In search of the critical factors in modeling and implementing virtual enterprise

Abstract

This paper intends to develop a research framework of virtual enterprise and to search critical factors in implementing and modeling the virtual enterprise. Prior to achieving those purposes, this paper refines the concept of the virtual enterprise. The refining processes consist of four steps. The first step is finding the origin and evolution of the concept. The second is reviewing the existing concept. The third step is analyzing various perspectives of the virtual enterprise. The last is developing a new taxonomy by reflecting the refined concept. This paper describes clearly the concept of virtual enterprise by finding the nature of the virtual enterprise in that it does not own traditional production factors. This paper identifies three distinctive characteristics of the virtual enterprise and proposes a taxonomy of virtual enterprise following the refined concept. The refined concept provides a foundation to develop a comprehensive research framework of virtual enterprise. The framework sketches the whole components consisting of the virtual enterprise environment and shows the relationships between specific factors. The proposed research framework may guide the study of virtual enterprise. In this paper, the proposed research framework is utilized to classify the critical factors for virtual enterprise. It is useful in preventing overlooking any critical factors. This paper identifies 27 critical factors to take into account in modeling and implementing a virtual enterprise by performing an extensive literature survey. Loose ownership structure, sharing explicit goals, etc. are critical for the core company also, critical factors for the production network are lower burdens to the participants, explicit partner selection criteria, sharing information and knowledge, accommodation of heterogeneous information systems, after sales service, etc. Identifying and developing core competences of member firms, fare distribution of profit, trust building, e...