Extended enterprise

An extended enterprise is a loosely coupled, self-organizing network of firms that combine their

to provide products and services offerings to the market. Firms in the extended enterprise may operate independently, for example, through market mechanisms, or cooperatively through agreements and contracts. They provide value added service or product to the OEM (Original Equipment Manufacturer).

Alternatively referred to as a "

toys, and others.

Extended enterprise is a more descriptive term than supply chain, in that it permits the notion of different types and degrees and permanence of connectivity. Connections may be by contract, as in partnerships or alliances or trade agreements, or by open market exchange or participation in public tariffs.^[1]

How an extended enterprise is organized and structured and its policies and mechanisms for the exchange of information, goods, services and money is described by the enterprise architecture.^[2]

The notion of the extended enterprise has taken on more importance as firms have become more specialized and inter-connected, trade has become more global, processes have become more standardized and information has become ubiquitous. The standardization of

Recently, the notion of extended enterprise has been updated by Alguezaui and Filieri (2014)[4] who have reconceptualized the extended enterprise in the knowledge economy.

References