Knowledge Integration Through Inter-Organizational Virtual Organizations

In this study we adopt an inter-organizational view to examine virtual organizations. Thus, we understand this phenomenon as a strategic agreement between organizations that collaborate and coordinate their work through information technologies. This dimension adds greater flexibility to the strategic alliance, which in turn is beneficial for the integration of knowledge. In high technology industries, interorganizational virtual organizations add further advantages to this option of knowledge integration through strategic alliances because of the importance of speed and flexibility. We put forward a series of propositions, following an initial approximation to this phenomenon through the combination of the strategic alliances, virtual organizations and the knowledge-based view literatures. INtrODUctION Progress in information and communication technologies has led to the development and increasing importance of virtual organizations. There are various definitions of this term. Greis and Kasarda (1997) recognize a common factor in all definitions: that a virtual organization is a related group of companies formed to enable collaboration toward mutually agreed on goals. One of the main features of virtual organizations is that people are linked not by face-to-face relationships but by sharing information through electronic networks (Weber, 2002); hence virtual organizations are associated with an intense use of computer networks and information technologies to support cooperation. Moreover, adaptability, flexibility and the ability to react quickly to changes in the market are properties that are usually assigned to virtual organizations (Grabowski and Roberts, 1999). DOI: 10.4018/978-1-60566-070-7.ch004