Skip to main content
SpringerLink
Log in

A Value Optimising Structure in Virtual Enterprises for Manufacturing Systems

  • Chapter
  • First Online:
Organisational Flexibility and Competitiveness

Part of the book series: Flexible Systems Management ((FLEXSYS))

Abstract

The significant increase in inter-organisational collaboration during the last two decades has led to the development of the so called Virtual Enterprises, defined as an organisation which can optimally utilise operational internalisation and externalisation to improve its performance. Such Virtual Enterprises are different from traditional companies in that they can achieve tasks beyond their internal capacity, and focus more resources on core competencies thus becoming agile. To transform a traditional organisation into a virtual enterprise, it is necessary to create an alliance management function for managing alliance operations. This paper describes the development of an externalisation and internalisation (EI) management function as the core of a virtual enterprise, organised around an organisation’s value stream function. This value stream oriented structure further ensures that the optimisation is value adding.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ahmadjian, C. L., & Lincoln, J. R. (2001). Keiretsu, governance, and learning: Case studies in change from the Japanese automotive industry. Organization Science: A Journal of the Institute of Management Sciences, 12(6), 19, 683.

    Article  Google Scholar 

  • Ariño, A., & Doz, Y. (2000). Rescuing troubled alliances… before it’s too late. European Management Journal, 18(2 April), 173–182.

    Article  Google Scholar 

  • Armistead, C., & Meakins, M. (2002). A framework for practising knowledge management. Long Range Planning, 35(1 February), 49–71.

    Article  Google Scholar 

  • Arnold, U. (2000). New dimensions of outsourcing: A combination of transaction cost economics and the core competencies concept. European Journal of Purchasing & Supply Management, 6(1 March), 23–29.

    Article  Google Scholar 

  • Baughn, C. C., et al. (1997). Protecting intellectual capital in international alliances. Journal of World Business, 32(2 Summer), 103–117.

    Article  Google Scholar 

  • Bonner, J. M., Kim, D., & Cavusgil, S. T. (2004). Self-perceived strategic network identity and its effects on market performance in alliance relationships. Journal of Business Research. (in press, Corrected Proof, Accessed 11 Sept 2004).

    Google Scholar 

  • Brouthers, K. D., Brouthers, L. E., & Wilkinson, T. J. (1995). Strategic alliances: Choose your partners. Long Range Planning, 28(3 June), 2.

    Article  Google Scholar 

  • Bruner, R., & Spekman, R. (1998). The dark side of alliances: Lessons from Volvo-Renault. European Management Journal, 16(2), 136–150.

    Article  Google Scholar 

  • Chen, C. (2004). The effects of knowledge attribute, alliance characteristics, and absorptive capacity on knowledge transfer performance. R & D Management, 34(3 June), 11, 311–321.

    Article  Google Scholar 

  • Chen, H., Lee, P., & Lay, T. (2009). Drivers of dynamic learning and dynamic competitive capabilities in international strategic alliances. Journal of Business Research, 62, 1289–1295.

    Article  Google Scholar 

  • Cooper, R. (1988a). The rise of activity-based costing—part one: What is an activity-based cost system? Journal of Cost Management, 2(2), 45–54.

    Google Scholar 

  • Cooper, R. (1988b). The rise of activity-based costing—part two: When do i need an activity-based cost system? Journal of Cost Management, 2(3), 41–48.

    Google Scholar 

  • Cooper, R. (1990). Elements of activity-based costing, emerging practices in cost management. Boston: Warran Gorham & Lamont.

    Google Scholar 

  • Cooper, R., & Kaplan, R. S. (1988). Measure cost right: Make the right decisions. Harvard Business Review, (September–October), 96–102.

    Google Scholar 

  • Cravens, K., Piercy, N., & Cravens, D. (2000). Assessing the performance of strategic alliances: matching metrics to strategies. European Management Journal, 18(5 October), 529–541.

    Article  Google Scholar 

  • Das, T. K., & Teng, B. S. (1996). Risk types and inter-firm alliance structures. Journal of Management Studies, 33(6).

    Google Scholar 

  • Das, T. K., & Teng, B. S. (1999). Managing risks in strategic alliances. Academy of Management Executive, 13(4).

    Google Scholar 

  • Davenport, T. H., & Probst, G. J. B. (2002). Knowledge management case book best practises (2nd ed.). Wiley-VCH.

    Google Scholar 

  • de Man, A. P., & Duysters, G. (2004). Collaboration and innovation: A review of the effects of mergers, acquisitions and alliances on innovation. Technovation (in press).

    Google Scholar 

  • Dickson, P. H., Weaver, K. M., & Hoy, F. (2005). Opportunism in the R&D alliances of SMES: The roles of the institutional environment and SME size. Journal of Business Venturing (in press).

    Google Scholar 

  • Dixon, J. R., Nanni, A. J., & Vollmann, T. E. (1990). The new performance challenge—measuring operations for world-class competition. Irwin: Business One.

    Google Scholar 

  • Douma, M. U., Bilderbeek, J., Idenburg, P. J., & Looise, J. K. (2000). Strategic alliances: Managing the dynamics of fit. Long Range Planning, 33(4 August), 579–598.

    Article  Google Scholar 

  • Draulans, J., deMan, A. P., & Volberda, H. W. (2003). Building alliance capability: Management techniques for superior alliance performance. Long Range Planning, 36(2 April), 151–166.

    Article  Google Scholar 

  • Drew, S. (1999). Building knowledge management into strategy: Making sense of a new perspective. Long Range Planning, 32(1 March), 130–136.

    Article  Google Scholar 

  • Dussauge, P., & Garrette, B. (1999). Cooperative strategy, competing successfully through strategic alliances. Wiley.

    Google Scholar 

  • Duysters, G. (1996). The dynamics of technical innovation: The evolution and development of information technology. Cheltenham: Edward Elgar.

    Google Scholar 

  • Duysters, G., de Man, A. P., & Wildeman, L. (1999). A network approach to alliance management. European Management Journal, 17(2 April), 182–187.

    Article  Google Scholar 

  • Dyer, J. H., Kale, P., & Singh, H. (2001). How to make strategic alliances work. Sloan Management Review, 42(4), 37–43.

    Google Scholar 

  • Emden, Z. et al. (2005). Learning from experience in international alliances: Antecedents and firm performance implications. Journal of Business Research, 58(7 July), 883–892.

    Article  Google Scholar 

  • Gillespie, K., & Teegen, H. J. (1995). Market liberalization and international alliance formation: The Mexican paradigm. The Columbia Journal of World Business, 30(4 winter), 58–69.

    Article  Google Scholar 

  • Goerzen, A. (2005). Managing alliance networks: Emerging practices of multinational corporations. Academy of Management Executive, 19(2).

    Google Scholar 

  • Hamel, G. P. (1990). Competitive collaboration: Learning, power and dependence in international strategic alliances. Doctoral dissertation, The University of Michigan, Ann Arbor, MI.

    Google Scholar 

  • Heimeriks, K. H. (2010). Confident or competent? How to avoid superstitious learning in alliance portfolios. Long Range Planning, 43, 57–84.

    Article  Google Scholar 

  • Hermens, A. (2001). Knowledge exchange in strategic alliances: Learning in tension. Creativity & Innovation Management, 10(3), 189.

    Article  Google Scholar 

  • Hoang, H., & Rothaermel, F. T. (2005). The effect of general and partner-specific alliance experience on joint R&D project performance. Academy of Management Journal, 48(2 April).

    Google Scholar 

  • Hoegl, M., & Schulze, A. (2005). How to support knowledge creation in new product development: An investigation of knowledge management methods. European Management Journal, 23(3 June), 263–273.

    Article  Google Scholar 

  • Hoffmann, W. H. (2005). How to manage a portfolio of alliances. Long Range Planning, 38(2 April), 121–143.

    Article  Google Scholar 

  • Inkpen, A. C. (1998). Learning and knowledge acquisition through international strategic alliances. Academy of Management Executive, 12(4), 12, 69–80.

    Google Scholar 

  • Inkpen, A. C. (2000). Learning through joint ventures: A framework of knowledge acquisition. Journal of Management Studies, 37(7), 26, 1019.

    Article  Google Scholar 

  • Jiang, X., & Li, Y. (2009). An empirical investigation of knowledge management and innovative performance: The case of alliances. Research Policy, 38, 358–368.

    Article  Google Scholar 

  • Johnson, H. T. (1990). Activity management: Reviewing the past and future of cost management. Journal of Cost Management, 3(4 Winter), 4–7.

    Google Scholar 

  • Johnson, H. T., & Kaplan, R. S. (1987). Relevance lost—the rise and fall of management accounting. Boston: Harvard Business School Press.

    Google Scholar 

  • Jordan, J. (2004). Controlling knowledge flows in international alliances. European Business Journal, 2nd Quarter, 16(2), 8, 70.

    Google Scholar 

  • Judson, A. S. (1990). Making strategy happen: Transforming plans into reality. London: Basil Blackwell.

    Google Scholar 

  • Kald M., & Nilsson, F. (2000). Performance measurement at Nordic companies. European Management Journal, 18(1), 113–127.

    Article  Google Scholar 

  • Kale, P., Dyer, J., & Singh, H. (2001). Value creation and success in strategic alliances: Alliancing skills and the role of alliance structure and systems. European Management Journal, 19(5 October), 463–471.

    Article  Google Scholar 

  • Kandemir, D., & Hult, G. T. M. (2005). A conceptualization of an organizational learning culture in international joint ventures. Industrial Marketing Management, 34(5 July), 430–439.

    Article  Google Scholar 

  • Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, January–February 71–79.

    Google Scholar 

  • Kaplan, R. S., & Norton, D. P. (1996). “Balanced Scorecard: Translating Strategy into Action” Harvard Business School Press.

    Google Scholar 

  • Kumar, S., & Seth, A. (1998). The design of coordination and control mechanisms for managing joint venture-parent relationships. Strategic Management Journal, 19, 579–599.

    Article  Google Scholar 

  • Lamming, R. (1994). Developing lean supply chains. Paper presented to the British Production & Inventory Control Society Conference, October.

    Google Scholar 

  • Langlois, R. N. (2002). Modularity in technology and organization. Journal of Economic Behavior and Organization, 49, 19–37.

    Article  Google Scholar 

  • Levinson, N. S., & Asahi, M. (1995). Cross-national alliances and interorganizational learning. Organizational Dynamics, 24(2), 50–63.

    Article  Google Scholar 

  • Lui, S. S., & Ngo, H. Y. (2004). The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management, 30(4 August), 471–485.

    Article  Google Scholar 

  • Lynch, R. L., & Cross, K. F. (1991). Measure up! Yardsticks for continuous improvement. Cambridge: Blackwell.

    Google Scholar 

  • Lynch, R. L., & Cross, K. F. (1995). Measure up! How to measure corporate performance. Cambridge: Blackwell.

    Google Scholar 

  • Maisel, L. (1992). Performance measurement: The balanced scorecard approach. Journal of Cost Management, 6(2), 47–52.

    Google Scholar 

  • Mathews, R. D. (2006). Strategic alliances, equity stakes, and entry deterrence. Journal of Financial Economics, 80(1 April), 35–79.

    Article  Google Scholar 

  • McCutcheon, D., & Stuart, F. I. (2000). Issues in the choice of supplier alliance partners. Journal of Operations Management, 18(3), 279–301.

    Article  Google Scholar 

  • McLemore, I. (1999). Putting the scorecard to work, part two of a series. Business Finance, (July).

    Google Scholar 

  • Mertins, K., Heisig, P., & Vorbeck, J. (Eds.). (2001). Knowledge management: Best practices in Europe. Berlin: Springer.

    Google Scholar 

  • Mitchell, W., Dussauge, P., & Garrette, B. (2002). Alliances with competitors: How to combine and protect key resources? Creativity & Innovation Management, 11(3 September), 21, 203.

    Article  Google Scholar 

  • Nair, A. S., & Stafford, E. R. (1998). Strategic alliances in China: Negotiating the barriers. Long Range Planning, 31(1 February), 139–146.

    Article  Google Scholar 

  • Neely, A. (1998). Measuring business performance—why, what and how. The Economist Books.

    Google Scholar 

  • Norman, P. M. (2001). Are your secrets safe? Knowledge protection in strategic alliances. Business Horizons, 44(6 November), 51–60.

    Article  Google Scholar 

  • Norman, P. M. (2002). Protecting knowledge in strategic alliances: Resource and relational characteristics. The Journal of High Technology Management Research, 13(2 Autumn), 177–202.

    Article  Google Scholar 

  • Parise, S., & Henderson, J. C. (2001). Knowledge resource exchange in strategic alliances. IBM Systems Journal, 40(4).

    Google Scholar 

  • Pollalis, Y. A., & Dimitriou, N. K. (2008). Knowledge management in virtual enterprises: A systemic multi-methodology towards the strategic use of information. International Journal of Information Management, 28, 305–321.

    Article  Google Scholar 

  • Pucik, V. (1988). Strategic alliances, organizational learning, and competitive advantage: The HRM agenda. Human Resource Management, 27(l), 77–93.

    Article  Google Scholar 

  • Quintas, P., Lefrere, P., & Jones, G. (1997). Knowledge management: A strategic agenda. Long Range Planning, 30, 385–391.

    Article  Google Scholar 

  • Rafuse, M. E. (1996). Working capital management: An urgent need to refocus. Management Decision, 34(2).

    Google Scholar 

  • Revilla, E., Acosta, J., & Sarkis, J. (2005). Value perceptions and performance of research joint ventures: An organizational learning perspective. The Journal of High Technology Management Research, 16(2 December), 157–172.

    Article  Google Scholar 

  • Robinson, D. (2003). Strategic alliances and the boundaries of the firm. Durham, NC: Duke University. (Unpublished working paper).

    Google Scholar 

  • Roztocki, N., Porter, J. D., Thomas, R. M., & Needy, K. L. (2004). A procedure for smooth implementation of activity-based costing in small companies. Engineering Management Journal, 16(4), 9, 19.

    Google Scholar 

  • Senge, P. M. (1990). The fifth discipline. Doubleday.

    Google Scholar 

  • Shultz, C. J., & Saporito, B. (1995). Protecting intellectual property: Strategies and recommendations to deter counterfeiting and brand piracy in global markets. Columbia Journal of World Business, 31(Spring), 18–28.

    Google Scholar 

  • Simonin, B. L. (1999). Transfer of marketing know-how in international strategic alliances: An empirical investigation of the role and antecedents of knowledge ambiguity. Journal of International Business Studies, 3rd Quarter, 30(3), 28, 463–490.

    Article  Google Scholar 

  • Tsang, E. W. K. (1999). A preliminary typology of learning in international strategic alliances. Journal of World Business, 34(3 Autumn), 211–229.

    Article  Google Scholar 

  • Turney, P. B. (1989). Using activity-based costing to achieve manufacturing excellence. Journal of Cost Management, 3(2 Summer), 23–31.

    Google Scholar 

  • Ward, M. (2005). Driven by knowledge. InsideKnowledge, 8(5 February).

    Google Scholar 

  • Womack, J. P., & Jones, D. T. (2003), Lean thinking. Free Press Business.

    Google Scholar 

  • Zhang, Y., & Li, H. (2001). The control design and performance in international joint ventures: A dynamic evolution perspective. International Business Review, 10(3 June), 341–362.

    Article  Google Scholar 

Download references

Acknowledgements

The authors would like to thank the managers of the seven case study companies, who believed in the value of this research, spent their precious time, and offered the research opportunities.

Author information

Authors and Affiliations

  1. Aston University, Aston Triangle, B4 7ET, Birmingham, UK

    Y. Zhang

  2. School of Engineering and Applied Science, Aston University, Aston Triangle, B4 7ET, Birmingham, UK

    Ashok K. Kochhar

Authors
  1. Y. Zhang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ashok K. Kochhar
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ashok K. Kochhar .

Editor information

Editors and Affiliations

  1. Strategic Management Area, Indian Institute of Management Kozhikode, Kunnamangalam, Kozhikode, Kerala, India

    M. K. Nandakumar

  2. Quantitative Methods and Operations Management Area, Indian Institute of Management Kozhlkode, Kunnamangalam, Kozhlkode, Kerala, India

    Sanjay Jharkharia

  3. Finance, Accounting and Control Area, Indian Institute of Management Kozhikode, Kunnamangalam, Kozhikode, Kerala, India

    Abhilash S. Nair

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer India

About this chapter

Cite this chapter

Zhang, Y., Kochhar, A.K. (2014). A Value Optimising Structure in Virtual Enterprises for Manufacturing Systems. In: Nandakumar, M., Jharkharia, S., Nair, A. (eds) Organisational Flexibility and Competitiveness. Flexible Systems Management. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1668-1_5

Download citation

Publish with us

Policies and ethics

Search

Navigation