Structure and Strategy in Virtual Organizations: Strategies for Virtual Travel Organizations

Abstract

The new era in the business environment requires the hierarchical structures of the businesses turn into flexible structures, the companies to share the information by combining their competencies and resources. The travel industry must be in cooperation with a large number of actors, as it has to offer a wide variety of products due to its structure. These companies are also in competition because they offer services to similar markets. Buhalis (2000) states that tourism establishes networks to become more competitive compared to other corporate networks. These businesses, which face the “partnership of competitors” dilemma as stated by Hamel (1991), can easily compete in the global business world by adapting to the new structure. There are many businesses which perform their activities in order to provide services on the basis of a common business understanding. Operating in the same area but having different competencies and resources, accommodation businesses, catering businesses, entertainment businesses and traveling businesses are among businesses that experience the dilemma of competitor partnership in the broadest sense. These businesses blend in their understanding of cooperation with today’s technology, achieving the virtual organization structures rather easily. Therefore, this study addresses the network-based strategies of virtual travel organizations, which are in conformity with today’s management mentality. In this sense, the concept of virtual organization has been defined in terms of travel sector in particular. After referring to the concept of virtual travel organization, the structure, process and characteristic are discussed. In conclusion, several strategy suggestions have been made for virtual organizations. The literature does not include many studies explaining the strategies on the basis of networks and exhibiting the components that affect the performance of VTO. The study contributes to the literature in those aspects and can also be a significant source of information for field students, scholars and professionals. © 2020, Springer Nature Switzerland AG.