Virtual Corporation and Technology Innovation : The Role of Project Managers in Neutralizing Uncertainties

Successful cases of transnational cooperation toward new technology innovation suggest that small firms and venture startups can benefit from forging strategic alliances with knowledge providers in the international market. We notice that knowledge sharing through strategic alliances is often done in the form of virtual teamwork. As long as organizational codes of weak firms can lead to new platforms that can bring about the benefits of low-risk and low-cost innovation projects, cooperation with a variety of global partners through virtual means can enhance the strategic position of innovative firms. However, since the international entry mode is restricted to virtual corporations(i.e., no other governance options available to each participant), production managers and their executive supporters face problems of searching and selecting reliable partners for their virtual knowledge sharing. In the absence of organizational means of control as in virtual corporations, project managers must be able to network international social capital using organizational resources available to them. What is required of these project managers is the ability in (a) locating potential knowledge providers in the private and public sectors of the global economy, (b) networking these potential partners using a variety of internet-based resources, and (c) safeguarding investments by setting up feasible governance mechanisms.