Strategy and Structure in a Virtual Organization

The business environment of the 21st century require organizations to respond quickly to market demands and thus traditional organization structures and strategy are no longer capable of sustaining the needs of this relentless pace. New forms of organizations in the form of virtual organization (VO) hold promise in the network world. Several organizations worldwide have already been experimenting virtual organizations’ structures and processes. These new virtual structures and processes, however, will require newer strategies to succeed. This paper attempts to highlight some strategy and structural issues of a VO. The study is conceptual in nature and inferences have been drawn from existing literature and practices.