Abstract
A virtual enterprise is a temporary relationship of participating members, which is formed for a specific objective or project and dissolved once the objective or project is fulfilled. The temporary nature of the relationship and the informal structure of the network can be the source of various challenges and risks. This chapter reviews the literature and investigates the risks associated with Virtual Enterprise Networks. It also argues that innovation is very important for managing/ mitigating risks and supports this argument by proposing a framework which defines a risk mitigation process under the perspective of supply chain innovation. This chapter also discusses ways to innovate within the virtual enterprise network and facilitating newfound innovation. The chapter ends with a brief discussion of future research areas and items of conclusion.
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