Knowledge Assets in Virtual Enterprises: Sources of Risk and Management Issues

Virtual Enterprises (VEs) are business models characterised by the aggregation of co-operating firms that share a common goal such as a business opportunity or a project. In these structures, knowledge can be seen as a primary asset. There is a subdivision of cognitive tasks among specialised companies, which exchange knowledge much before they even exchange goods or money. Assuming a knowledgebased view of VEs, implies the necessity to define appropriate methods to manage knowledge exchanges and the associated risks. The aim of this chapter is to explore the nature of knowledge flows in a VE and study the connected managerial issues to point out the different knowledge-related risk factors and to discuss the challenges posed by their successful management. To provide a practical example, the chapter also illustrates the findings of a real-life case-study.