Research On The Coordination And Management Of Virtual Enterprise

With the rapid development of economic globalization and dynamic market, enterprises are facing more and more opportunities and challenges. On this situation, the traditional enterprise strategy can not meet the requirements any more. In the same time, because of the intensity of the competition and the shortage of resources, it’s more and more difficult for enterprises to gain advantages on all the units. The emerging of Virtual Enterprise, as one of advanced management theories, is just one which can adapt to the rapid progress in communication science and technology, and the global economy. The outsourcing virtual operation strategy is a new one, which ask the enterprises concentrate resources on its own core competence, abandoning the non-core units, and establish the virtual enterprises with other enterprises, consumers and even the opponents to operate. However, Virtual Enterprise, as a temporal alliance, has no actual headquarters and administrator, and because of the difference between its partners the possibility of forming problems has risen dramatically during the process of operation, which leads to coordinate and manage difficultly. Therefore, it’s a big issue that how to enhance the coordination and management between partners of Virtual Enterprise to gain better development in this new environment, and it’s important to study its coordination and management.The article firstly defines the important concepts of coordination and management about Virtual Enterprise, and secondly describes the content of theory as the core competence of the corporation and symbiosis theory. Based on the status quo of coordination and management of Virtual Enterprise, this paper analyzes problems during the coordination and management in Virtual Enterprise, including the problems of organization and management, lack of credit, different culture and unequal distribution of benefits. According to the above mentioned several questions, the paper studies and finds out the main formative factors of coordination and management. These factors are multiple objectives, asymmetrical information, uniform culture, unequal distribution of benefits, lack of trust and effective communication for partners. This paper proposes that it’s necessary to build the coordination and management mechanism, including communication mechanism, trust mechanism, distribution of benefits mechanism, and risk sharing mechanism. At the last part, the article gives some suggestions on coordination and management of Virtual Enterprise, such as choosing right partners, culture and other aspects, to improve much more validity of coordination and management.