Virtual Organizations Management

While single-domain and application-specific “organized networks” are known and have been in use throughout history, the concept of virtual organizations (VO) as such is very young (Camarinha-Matos, Banahan, & Sousa, 2004). In addition, virtual organizations encompass a wide range of typologies in structure, topology, and time span, as well as life cycle coverage (Karvonen, Salkari, & Ollus, 2005). Even though specific categories of VOs are more and more understood (i.e. supply chains, extended enterprises and other types of networks) and systematically supported by dedicated methods and tools, the “management” of their activities in terms of fostering the coordinated target achievement is still in its beginnings. Hence the management of generic VOs is even less systematically researched, which in itself constitutes a major challenge. It is important to note that VO management is about the management of business processes going over and across the VO members, it is not about the management of the constituent members themselves. VO management denotes the organization, allocation, and coordination of resources and their activities, as well as their interorganizational dependencies, to achieve the objectives of the VO within the required time, cost, and quality frame (ECOLEAD, 2005).