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Virtual organization and the SMEs: a review and model development

Author

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  • Timo Pihkala
  • Elina Varamaki
  • Jukka Vesalainen

Abstract

Virtual organizations have been presented as one solution for SMEs aiming to increase their competitiveness. This paper seeks to clarify those preconditions that affect the abilities of SMEs to participate in virtual organizations. The reviews on the networking literature and the resource-based theory show that the demands that virtual organizations set to the SMEs are substantial, and that from this point of view getting access into this type of networking is possible only for those SMEs that are competitive already. In the theoretical part of the paper a typology of SMEs is created, highlighting the resource base and networking capabilities of different MEs. The paper presents four illustrative cases, reflecting the theoretical types. The cases bring out the nature of SME networking as an iterative process: the more the firm participates in networking the better it is capable of creating new co-operation. On the other hand, if the firm is either unwilling or incapable of networking with other firms the preconditions for participating in a virtual organization become unreachable.

Suggested Citation

  • Timo Pihkala & Elina Varamaki & Jukka Vesalainen, 1999. "Virtual organization and the SMEs: a review and model development," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(4), pages 335-349, October.
    • Handle: RePEc:taf:entreg:v:11:y:1999:i:4:p:335-349
    DOI: 10.1080/089856299283146
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    Citations

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    Cited by:

    1. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Modified Stage-Gate: A Conceptual Model of Virtual Product Development Process," Post-Print hal-00593359, HAL.
    2. Igor Burakovsky & Andrii Voloshyn, 2021. "Theoretical Approaches of SME Internationalization," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 10(1), pages 1-9, April.
    3. Simin Lin, 2010. "Internationalization of the SME: Towards an integrative approach of resources and competences," Post-Print halshs-00692465, HAL.
    4. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "Virtual R&D teams and SMEs growth: A comparative study between Iranian and Malaysian SMEs," MPRA Paper 26983, University Library of Munich, Germany, revised 13 Jul 2010.
    5. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "Virtual Teams: A New Opportunity to Develop a Business," MPRA Paper 26934, University Library of Munich, Germany, revised 2010.
    6. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "The Effectiveness of Virtual R&D Teams in SMEs: Experiences of Malaysian SMEs," MPRA Paper 27368, University Library of Munich, Germany, revised Nov 2010.
    7. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2009. "Envisages of New Product Developments in Small and Medium Enterprises through Virtual Team," MPRA Paper 26984, University Library of Munich, Germany, revised 02 Jan 2010.
    8. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "Critical factors for new product developments in SMEs virtual team," MPRA Paper 26936, University Library of Munich, Germany, revised 15 Jul 2010.
    9. Novillo Villegas, Sylvia Mercedes & Haasis, Hans-Dietrich, 2017. "Supply chain flexibility and SMEs internationalization: A conceptual framework," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Digitalization in Supply Chain Management and Logistics: Smart and Digital Solutions for an Industry 4.0 Environment. Proceedings of the Hamburg Inter, volume 23, pages 195-212, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    10. Feroz Ahmed & Monimul Haque, 2011. "Constraints of Manufacture based Small and Medium Enterprise (SME) Development in Bangladesh," Journal of Social and Development Sciences, AMH International, vol. 1(3), pages 91-100.
    11. Davaei, Mahboobeh & Gunkel, Marjaana & Veglio, Valerio & Taras, Vas, 2022. "The influence of cultural intelligence and emotional intelligence on conflict occurrence and performance in global virtual teams," Journal of International Management, Elsevier, vol. 28(4).
    12. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2010. "SMEs; Virtual Research and Development (R&D) Teams and New Product Development: A Literature Review," Post-Print hal-00593362, HAL.
    13. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    14. Yusuf, Yahaya Y. & Gunasekaran, Angappa & Musa, Ahmed & Dauda, Mohammed & El-Berishy, Nagham M. & Cang, Shuang, 2014. "A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 531-543.
    15. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "Virtual Collaborative R&D Teams in Malaysia Manufacturing SMEs," MPRA Paper 29177, University Library of Munich, Germany, revised 20 Dec 2010.
    16. Hee Dae Kim & Duk Hee Lee & Hochull Choe & Il Won Seo, 2014. "The evolution of cluster network structure and firm growth: a study of industrial software clusters," Scientometrics, Springer;Akadémiai Kiadó, vol. 99(1), pages 77-95, April.
    17. Lechner, Christian & Dowling, Michael & Welpe, Isabell, 2006. "Firm networks and firm development: The role of the relational mix," Journal of Business Venturing, Elsevier, vol. 21(4), pages 514-540, July.

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