A CASE STUDY OF CULTURE INNOVATION FOR VIRTUAL ENTERPRISE IN CHINA

Fan Song and Li Yuan
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Fan Song: Management School, Xi'an Jiaotong University, China
Li Yuan: Management School, Xi'an Jiaotong University, China

Journal of Enterprising Culture (JEC), 2004, vol. 12, issue 03, 253-275

Abstract: Abstract Virtual enterprise exists in a higher organizational form when economy develops to some stages. This paper analyzes the operational characters of organization and behavior between traditional enterprise and virtual one. Based on the special features, a close-loop system model of culture innovation for virtual enterprise is established from point of view in System Science. It is recognized that culture force is the most powerful and significant core competence in virtual enterprise. The key five steps of culture innovation are presented and three situations on flexible culture management of virtual enterprise are stated in the paper. In addition to the survey research, we conducted an in-depth case study of China. The successful reasons for the enterprise culture innovation in virtual enterprise and their alliance are finally discussed with the actual case "New Era" in China. Our case study validates some of these findings in small- and medium-sized virtual enterprise. Implications for practice as well as study are provided.

Date: 2004
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DOI: 10.1142/S0218495804000142

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