Research On Negotiation Based Completion Risk Management In Virtual Enterprise

With the arrival of the global economy and the information technology reformation, the competition of the enterprises is becoming more and more intensive. Now single enterprise couldn’t fit in with this transformation through its own competence. Virtual enterprises, which can quickly adapt to the demand of the marketing with high quality and low cost, have been catching people’s eyes.The virtual enterprise has the advantage so flexibility, response rapidity, cost-sharing etc, but its risk is not reduced which caused by the uncertainty of the market and complexity of itself. We can hardly afford to neglect the risk and its consequent losses of virtual enterprise which may even cause bankruptcy. In this situation, we have to manage virtual enterprise effectively and guarantee its establishment and operation to be successful to win comparative advantage.Based on the reviews on virtual enterprise, risk management of virtual enterprise and negotiation, this paper proposes to adopt negotiation to solve the completion risk management of virtual enterprise, and mainly does researches on these following aspects:(1) This paper reviews the related theory of virtual enterprise risk management and negotiation, and then discusses the signification of using negotiation in the research on completion risk management of virtual enterprise. Meanwhile, because of the relationships among the duration of task, success probability and cost, program evaluation and review technology (PERT) has been used to calculate the success probability, and then the problem of virtual enterprise completion risk management based-on cost-duration negotiation has been proposed.(2) According to the problem of cost distribution in virtual enterprise with completion risk control requirement or searching for the maximum success probability, this paper has respectively established the cost-duration negotiation framework model for completion risk management of the virtual enterprise which has identified partner enterprises. Meanwhile, three different concession strategies have been designed in the negotiation mechanism for each negotiation framework model, and the effectiveness of each negotiation framework model has been verified by different example analysis in each problem.(3) According to the problem of completion risk management caused by partner selection in the establishing procedure of virtual enterprise alliance, in the bases of the two upper problems, two cost-duration negotiation framework models for virtual enterprise completion risk management with the characteristic of partner selection have been established for each problem. Through the simulations of two small-scale examples in every problem, the results show that the negotiation frameworks can effectively gain the plan of partner selection and cost distribution that fulfills the objective in each problem.