TABLE OF CONTENTS Virtual organizations are those which employ extensive networked information infrastructures to attract resources and manage a value chain which transcends organizational boundaries, geographical regions and time zones. Such firms deal in products which lend themselves to a virtual market, namely mass-customized goods and services produced and deliverable anywhere, anytime and in any variety.
The concept of organizational virtuality is a characteristic of the firm's entire environment. It defines the perception of globalness held by its stakeholders about the business scope with respect to its presence, processes, products and relationships. It is associated with features such as flexibility of operations, responsiveness to market changes, agility in the management of interfirm relations and other linkages within industry. The exploitation of these features through the strategic management of a global infrastructure platform can enhance the perception of an extended scope of business even though in reality the enterprise may be operating with a limited physical scope. In other words, the firm may be able to project itself and its products as being available at multiple locations and in varied time zones. Venkatraman and Henderson (1998) refer to the concept of managing a virtual enterprise as virtual organizing and we here apply the term VSP to this overall e-business strategy.
