Virtualization as a Process of Transformation of Small and Medium Enterprises (SMEs) in the Global Virtual Organization

Abstract

The chapter is devoted to the subject the transformation of SMEs due to the application of Information Technology (IT). These enterprises, despite their significant position in local economies, had limited possibilities while competing with large-scale enterprises (LSE) on the global market. Consequently, their role more and more often was reduced to the role of satellites. The use of IT has allowed SMEs to transform into virtual organizations and in this form succeed in the global market. The author has focused on the analysis of the following problems: virtualization as a direction of the development of SME, analysis of its strengths and weaknesses, and new opportunities and risks face medium-scale small construction enterprise that, by using information technology and creating a virtual organization, was able to defeat a large-scale enterprise (LSE) in an international tender for construction of a hotel complex.