Management of Virtual Enterprises - A Knowledge and Competence Perspective

The Ph.D.-study investigates how the virtual enterprise form of organization is being applied in the one-of-a-kind industry and what demands it puts to central actors. The research is motivated partly by a desire to understand the current changing rationales for economic organization leading to the importance of virtual enterprises and network organizations, and partly to understand the implications for strategic management of companies apt for these new organizational forms. Transformation of economic organization is investigated from the perspective of three drivers of change: 1) the increasing importance of knowledge, 2) the influence of advanced information and communication technology, and 3) the emergence of the network society. These three drivers challenge the traditional dichotomy of markets and hierarchies as introduced by Ronald Coase and Oliver Williamson, and bring new organizational forms as the virtual enterprise and network organizations into the center of discussion. Particular emphasis is devoted to analyzing the virtual enterprise business model, how it reflects the three drivers of transformation of economic organization, and how it is currently being adopted in the project-based OKP-industry. This includes an analysis of how (if) the virtual enterprise business model is applied for development of new competences and leveraging of existing competences. Despite of the proclamation of the virtual enterprise as the business model for the 21st century, few examples of a proactive, strategic use of the business model exist beyond the Hollywood movie-industry. This may suggest either that the virtual enterprise concept has been oversold or that there still is a way to go before the opportunistic vision is realized to its full potential.