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Home > QFINANCE Dictionary > Definition of virtual organization

Definition of

virtual organization

E-Commerce

temporary partnerships between firms via communications technologies a temporary network of companies, suppliers, customers, or employees, linked by information and communications technologies, with the purpose of delivering a service or product. A virtual organization can bring together companies in partnering or outsourcing arrangements, enabling them to share expertise, resources, and cost savings until objectives are met and the network is dissolved. Such organizations are virtual not only in the sense that they exist largely in cyberspace, but also in that they are unconstrained by the traditional barriers of time and place. A greater level of trust is required between employer and employee or coworkers, or partner organizations, because they will be working out of one another's sight for most of the time.

Related definitions of "virtual organization"

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Definitions of ’virtual organization’ and meaning of ’virtual organization’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’virtual organization’ and other financial terms with our online QFINANCE Financial Dictionary.

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