Abstract
Virtual enterprise is a temporary alliance of enterprises that come together to share skills, core competencies or resources in order to better respond to cope with demand of customers, and whose cooperation is supported by computer networks. It is very important and difficult activity in forming a virtual enterprise to select appropriate business partners, because each enterprise considers not only pursuing its profit but also sharing the risk to join the virtual enterprise. In this study, we focus on the negotiation process in virtual enterprise formulation as the basic research to clarify its effective management. We develop a computer simulation model to form a virtual enterprise through multiple negotiations amongst several potential members in the negotiation domain, and finally clarify the formulation dynamism with the negotiation process.
