Virtual Business Networks

Classification of Virtual Business Networks

Virtual Business Network is the most discussed topic among the Business Communities nowadays. The basic definition of a Virtual Business Network means a group of small Businesses joining together to collaborate and co-operate to accomplish common Business objectives and goal by creating networks that facilitate communication using technology based on the internet.

The main difference of a Virtual Business Network from a Social Network is that the members represent Businesses or Companies and not individuals as in Social Networks. The Virtual Business Networks have different names and are growing popular over the internet.

Names such as Virtual Enterprise Networks, Virtual Collaborative Networks, Virtual Cluster Networks, Virtual Collaborative Supply Chains and Virtual Networked Enterprises are a few examples among many such names. This article will help to classify the various types of Virtual Business Networks based on key factors.

Because of these varied names for Virtual Business Networks, the customers and government agencies face the problems of correctly deciphering the roles and functionality of each such Virtual Business Networks. The customers and potential Business alliances need to understand what the networks actually mean before buying services or for joining the network as a member.

The classification of Virtual Business Networks will also help Small Businesses to identify which type of network is best suited for them and help to attain their ambitions for growth through virtual collaboration.

Classification will also help the large enterprises to try working with smaller Business Network instead of the traditional supply chains. Also the policy makers of government will get help from the classification to decide strategies for enhancing economic competitiveness and improvements.

Therefore there is a need to device methods for comparing the key features of the various types of Virtual Business Networks. This will help small companies to join the correct network and government policy makers to develop strategies aimed at regional and economic growth.

Factors influencing Virtual Business Networks

There are mainly two important factors that influence the Virtual Business Networks. The first one is the vision and aim of the individual companies and Businesses that for part of the Virtual Business Network.

The small Businesses generally join the Virtual Business Networks with aim of increasing their sales, improving their knowledge, exposure to innovation and reducing costs of gaining such services. The Small Businesses benefit from the collective marketing, bidding and enhanced product lists in a Virtual Business Network.

The Small Businesses cannot obtain such services without investing substantially and taking the risk of staying alone. To what extent the Small Business give importance to maintaining a relationship within the Virtual Business Network depends on this factor. The next important factor is the Regional Business Policies.

The Regional Business Policies aim to develop Business networks based on the Business viability and facilities in a particular region. The policies help to support collaboration among small and medium sized Businesses and allowing them to link with the global market.