Research on the internal cause and correlative factor of virtual enterprises

Conference paper
Part of the IFIP — The International Federation for Information Processing book series (IFIPAICT, volume 251)


This paper makes use of a vertical integration model to explain virtual enterprises, analyses respective characteristics of virtual operation and internal integration, probes into the correlative factors of virtual operation. The paper points out that virtual operation and internal integration are two parallel ways which enterprises may choose to expand their organization. Virtual operation urges exterior market to become perfect, so may overcome the problem of market failure. Virtual operation can construct a relatively perfect exterior market, also uses existing exterior market efficiently, so enterprises are able to control market and transaction through virtual operation. But effective virtual operation is restricted by many conditions. The correlative factors of virtual enterprises includes the interior conditions of enterprises and exterior conditions from the dimensionalities of micro-environment and macro-environment. Therefore, along with the changes of market, environment, competition and enterprises’ strategy, being agile and taking dynamic integration or virtual operation should be the best policy of enterprises’ organization.


Competitive Advantage Correlative Factor Market Failure Virtual Enterprise Nash Bargaining Solution 
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Copyright information

© International Federation for Information Processing 2007

Authors and Affiliations

  • Hu Yi
    • 1
  1. 1.School of economicsHuazhong Normal UniversitywuhanP.R.China

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