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Virtual enterprise formation in the context of a sustainable partner network

Igor Polyantchikov (Department of Mechanical and Industrial Engineering, Tallinn University of Technology, Tallinn, Estonia)
Eduard Shevtshenko (Department of Mechanical and Industrial Engineering, Tallinn University of Technology, Tallinn, Estonia)
Tatjana Karaulova (Department of Mechanical and Industrial Engineering, Tallinn University of Technology, Tallinn, Estonia)
Taivo Kangilaski (Department of Software Science, Tallinn University of Technology, Tallinn, Estonia)
Luis M. Camarinha-Matos (Department of Electrical Engineering, University of Lisbon, Caparica, Portugal)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 14 August 2017

551

Abstract

Purpose

Various networked organizational forms already exist in the market today, however, all of them share the same problem – lack of fast and objective procedures for partners’ selection when addressing a particular project. The purpose of this paper is to solve such problems by offering an alternative to the existing global market layout, dominated by large corporations.

Design/methodology/approach

This research belongs to the category “fuzzy decision making and multi-attributive decision making,” since it is using methodologies such as the analytical hierarchy process (AHP), the fuzzy-AHP approach, and the Technique for Order of Preference by Similarity to Ideal Solution.

Findings

The authors defend that appropriate partner selection is a vital success factor in any collaboration.

Research limitations/implications

The authors have designed a sustainable partner network solution for the field of machinery. Nevertheless, the proposed approach is adaptable to other fields also, whereas the focal player or project owner selects the best partner based on a set of criteria.

Practical implications

The paper includes a feasibility case study for the approval of findings, where several small and medium enterprises (SMEs) from the field of machining collaborate to achieve a common goal.

Social implications

The research focuses on production enterprises (especially for SMEs) and is intended to improve their competitiveness. Small enterprises combining into a network makes it possible to compete with large corporations and helps to decrease project initiation time and project realization risks.

Originality/value

The main idea is to collect information about the available resources of SMEs into a new temporary entity and to utilize those resources for the realization of the tasks of a particularly large project, while meeting customer expectations. In addition, this work also suggests a calculation tool for faster partner evaluation (assessment) based on various criteria for each particular project.

Keywords

Acknowledgements

This research was supported by Estonian Ministry of Education and Research by targeted financing scheme B41, by Department of Mechanical and Industrial Engineering, School of Engineering and by Department of Software Science School of Information Technologies of Tallinn University of Technology. Partial support was provided by Portuguese FCT-PEST program UID/EEA/00066/2013 (Impactor project).

Citation

Polyantchikov, I., Shevtshenko, E., Karaulova, T., Kangilaski, T. and Camarinha-Matos, L.M. (2017), "Virtual enterprise formation in the context of a sustainable partner network", Industrial Management & Data Systems, Vol. 117 No. 7, pp. 1446-1468. https://doi.org/10.1108/IMDS-07-2016-0274

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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