Kenneth Preiss Virtual Organization Theory
The theory of the virtual organization was developed by Kenneth Preiss in the early 1990s. This new theory defined virtual organizations as those that are structured around a core of core stakeholders, its associated stakeholders, and its strategic linkages. Unlike traditional organizations, virtual organizations do not have a physical presence, but instead exist entirely online. Preiss defines a virtual organization as a network of people, communication, and technology that are employed for the purpose of achieving a common goal, based upon a technology-enabled network.
The idea of a virtual organization is not a new one. Companies have been relying on remote employees to extend their capabilities for decades. However, what has changed dramatically in recent years is the ability of technology to allow a virtual organization to exist almost completely electronically. Through the use of the Internet and other communication technologies, the virtual organization can now use a completely virtual environment to accomplish its goals.
The concept of the virtual organization is based on the idea that the traditional office is no longer necessary. The virtual organization is capable of utilizing technology in order to eliminate the need for physical office space and other overhead costs. Instead, the organization can rely on the computer network to provide communication, collaboration, and information sharing capabilities. This allows the virtual organization to be more efficient and flexible, allowing it to adapt quickly to changing market conditions.
In order to be successful, the virtual organization must take advantage of the technological advances that have been made. In doing this, they must also create a virtual infrastructure that is secure and able to store data in an efficient manner. In addition, the virtual organization must also be able to link to other organizations in order to extend their capabilities.
Preiss explains the concept of the virtual organization in the context of its three main components. These components are the core stakeholders, the associated stakeholders, and the strategic linkages. The core stakeholders are the primary people involved in the organization; this include the owners, the managers, and the employees. The associated stakeholders are those who are not directly involved in the organization but instead play a supporting role. Finally, the strategic linkages are the relationships between the organization and its external partners, such as customers, vendors, and other organizations.
The core stakeholders are responsible for the overall direction and management of the virtual organization. They are responsible for setting goals and objectives, developing the necessary technical infrastructure, and maintaining the desired level of communication and collaboration. The associated stakeholders are the people who provide support to the core stakeholders. This could include personnel in technical roles such as programmers, engineers, or accountants, or it could include personnel in more sales or business development roles. Lastly, the strategic linkages are the relationships, such as partnerships or joint ventures, that the organization has with external organizations in order to extend its capabilities.
Preiss theory of the virtual organization emphasizes the need for secure technology and reliable communications in order to support a virtual organization. The virtual organization must be able to store data securely, communicate with external partners and stakeholders, and utilize technology to achieve its goals. The use of technology is an essential part of the virtual organization, without technologies such as the Internet, e-mail, and other such technologies, the virtual organization would not exist.
Overall, Preiss virtual organization theory emphasizes the importance of creating a secure and efficient environment for the virtual organization. This is done through the use of secure technology, reliable communication networks, and the utilization of strategic linkages. By utilizing the latest technology, virtual organizations can become more efficient, flexible, and adaptable, allowing them to meet the demands of a rapidly changing market.
