2008Systems EngineeringRequires access

The Evolution and Strategy of the Virtual Enterprise Clusters Model Based on the Network Effect Economy

LU Xiao-cheng

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Abstract

Caused by the network effect economy,the virtual enterprise clusters overcome the geographical restrictions of traditional clusters' factors such as space,information and resources.To analyze the network effect mechanism,the enterprise clusters evolution can be divided into spaceresources type,supply-chain type and virtual-enterprise type of cluster models.By examining spatial characteristics of the Network effects,we find the developmental strategies such as increasing the scale effects,operating on the technical standards,and locking in the switched costs can be adopted to promote the development of virtual enterprise clusters.

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What this paper is about

Caused by the network effect economy,the virtual enterprise clusters overcome the geographical restrictions of traditional clusters' factors such as space,information and resources.To analyze the network effect mechanism,the enterprise clusters evolution can be divided into spaceresources type,supply-chain type and virtual-enterprise type of cluster models.By examining spatial characteristics of the Network effects,we find the developmental strategies such as increasing the scale effects,operating on the technical standards,and locking in the switched costs can be adopted to promote the development of virtual enterprise clusters.

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Available abstract

Caused by the network effect economy,the virtual enterprise clusters overcome the geographical restrictions of traditional clusters' factors such as space,information and resources.To analyze the network effect mechanism,the enterprise clusters evolution can be divided into spaceresources type,supply-chain type and virtual-enterprise type of cluster models.By examining spatial characteristics of the Network effects,we find the developmental strategies such as increasing the scale effects,operating on the technical standards,and locking in the switched costs can be adopted to promote the development of virtual enterprise clusters.

Key concepts: Enterprise private network, Cluster (spacecraft), Enterprise information system, Industrial organization, Enterprise life cycle, Network economy, Computer science, Supply chain

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