Research On Protection Mechanism For The Core Competence Of A Virtual Corporation Member

Virtual corporation, which appeared at the end of the 20th century, based on agile manufacturing, has broken through the traditional competitive way between firms. Through cooperation, firms can get a "win-win" outcome. If only a firm has its core competence, it can build a virtual corporation with other firms, take advantage of external resources and strength, and make itself grow continuously. However, because of imperfect laws and regulations, and because of a few other facts, a firm's core competence may be weakened and even may lose during the cooperation process with other firms.This article reviews the theory of core competence and virtual corporation, analyzes various risks the core competence of a virtual corporation member may encounter, and in the light of these risks builds a protection mechanism for the core competence of a virtual corporation member. In chapter 3, we first utilizes the game theory to analyze risk factors that affect the core competence of a virtual corporation member during the core competence share and integration process, then gives a detailed analysis of risk factors that affect the core competence of a virtual corporation member during each phase of virtual corporation's life cycle, and finally analyzes internal risk factors that affect the core competence of a virtual corporation member. Responding to the various risk factors analyzed in chapter 3, in chapter 4 we builds a protection mechanism mainly consists of a series of protection principles and two types of risk prevention mechanism for the core competence of a virtual corporation member. Firstly, in the light of risk factors during the cooperation process, we selects four related dimensions including the objective dimension, the management dimension, the resources and technology dimension and the culture dimension, and builds one risk prevention mechanism for the cooperation process. Secondly, in the light of internal risk factors, we offer a series of protection measures for the core competence of a virtual corporation member, and build the other risk prevention mechanism.The research enriches the theory of core competence and virtual corporation, makes up a few deficiencies, and the protection mechanism built for the core competence plays a guiding role in fully showing the competitive advantage of virtual corporation and in a virtual corporation member protecting its core competence, moreover, it's a great benefit to the spread and application of the advanced organizational form: virtual corporation.