Interpretive structural modelling of risk sources in a virtual organisation

Abstract

Speedier network decision making together with shorter time to bring items to market together with lower network operating costs all result from enhanced knowledge sharing. In addition reuse of enterprise and network knowledge resulting from improved capture means that any risk of repeating earlier project work is limited, repetition of past mistakes is reduced. Decisions are made with greater awareness of any risks involved and therefore there is likely to be a reduction in costs arising from faulty decisions and failed collaborations. While there are many advantages attached to the use of virtual organisations (VOs) there are also challenges, including risks that have become apparent through undertaking a review of the literature. In total 13 sources of risk were found stemming from the network related risks in a VO, where the emphasis of the study was placed. This paper contains a thorough study that will identify these threats as well as gaining a sound understanding of them by examining them one by one as they have been identified by the literature and previous studies. Subsequently, their relative importance will be analysed through the use of interpretive structural modelling (ISM) using information gathered in a questionnaire.

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