A template for externalisation-internalisation decisions in virtual enterprises

Yumin Zhang*, Ashok Kochhar

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Recognising the importance of alliance decision making in a virtual enterprise (VE), this paper proposes an analysis template to facilitate this process. The existing transaction-cost and resource-based theories in the literature are first reviewed, showing some deficiencies in both type of theories, and the potential of the resource based explanations. The paper then goes on to propose a resource-based analysis template, integrating both the motives of using certain business forms and the factors why different forms help achieve different objectives, Resource-combination effectiveness, management complexity and flexibility are identified as the three factors providing fundamental explanations of an organization's alliance making decision process. The template provides a comprehensive and generic approach for analysing alliance decisions.

Original languageEnglish
Pages (from-to)71-93
Number of pages23
JournalInternational Journal of Operations and Quantitative Management
Issue number2
Publication statusPublished - Jun 2013


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