New organizational forms within the aquaculture industry: The fish‐farming enterprise as a ‘virtual’ organization

Abstract

The international aquaculture industry is characterized by a global integration process with increasing competition across borders and continents. The rapid development of technology, the extended market rivalry due to new firm entries, and the elevation of quality standards in the international seafood market place a heavy strain on the strategy development process of aquaculture enterprises. In this article, we focus on the ties between strategic positioning in the market and the organizational configuration of the firm. The virtual organization is introduced as an organizational form for a dynamic fish‐farming enterprise. A virtual organization is characterized by flexible borders, emphasis on external cooperative relations and networks instead of ownership integration, and norm‐based relational contracts as focal governance mechanism. The results from an in‐depth, longitudinal study of a Norwegian fish farming enterprise are presented.