VIRTEC: An example of a Brazilian virtual organization

In response to increasing international competition, enterprises have been investigating new integration processes to maintain their competitive position. In this context, the virtual enterprise (VE) represents an appropriate cooperation alternative and competitive advantage for small and medium enterprises (SMEs). An analysis of the Brazilian context of SMEs indicates that many small high technology enterprises have failed for lack of technical and and management competencies. In general, virtual enterprises and their cooperation-based form of organization can be considered adequate to overcome these deficiencies and to support the formation of high technology-based enterprises. This paper describes the VIRTEC project, a pioneering Brazilian virtual organization, within the approach of the global virtual business framework. This report begins with an outline of the context of Brazilian SMEs, providing the setting of the project. This is followed by a description of the project itself, including its various steps. The paper concludes by listing the benefits achieved to date.