Contribution to Research on Virtual Production in Wood Processing and Furniture Manufacturing

Virtual organizational forms of enterprises (strategic alliances, partnerships, networks and outsourcing connections, virtual teams and enterprises) become dominant in a modern global business world. Virtual organizations of unique hierarchy structure can provide the rationalization of business costs, more effective use of the existing capacities and flexibility in responding to market demands. If the Croatian wood processing and furniture manufacturing enterprises want to survive on a global market they
have to get specialized in areas in which they can achieve top world results and based on such results develop their further business activities focusing their interest on partnerships with complementary business partners. Transformation process (virtualization) of the Croatian wood processing and furniture manufacturing enterprises is slow and accompanied with a lot of strategic errors, which can often cause crisis situations and closing of enterprises. Significant use of virtual organization concept would provide quicker and less painful transformation of traditional enterprises at a micro-level and increase competitiveness of the whole wood sector at a macro-level.