A virtual organization is a temporary collection of geographically dispersed individuals, groups, organizational units, or entire companies that depend on electronic linking to complete a shared production process rather than operating from one physical structure. Businesses adopting the model come together to share skills, core competencies, and resources so they can respond to opportunities together, with their cooperation coordinated through computer networks rather than a conventional hierarchy. A virtual enterprise is one specific case of this broader organizational form.
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A virtual organization coordinates geographically dispersed people and firms through information technology rather than a shared physical workplace, a structure the technology industry own communication and collaboration tools make possible.
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