Virtual enterprises and virtual economy: manifestations and policy challenges

This paper investigates some of the manifestations and major forces driving the emergence of the new economy. A model of the virtual enterprise is pro posed and investigated in the context of a virtual industry value chain. Th e transition to the virtual economy is definitely technology-driven but is also shaped by social, economic and institutional forces. As such, it raise s a number of significant issues presented as propositions concerning the n ew governance, restructuring, and social distancing.