A VO formation process of a project-based organization with trust evaluation using goal achievement probability

In current business environment, competitiveness is no longer between enterprises, but between enterprise networks because individual enterprises often do not have all the necessary skills and competencies to satisfy the new market requirements. Therefore, finding trustworthy partners and the optimal combination are important to achieve competitive advantages and to survive in the rapidly changing market. However, due to the complexity and ambiguity of real enterprisespsila decision making processes, it is not easy to find appropriate models in literature to evaluate and select right and trustworthy partners. Also, many alternatives to form a virtual organization (VO) make the process difficult. In this paper, a VO formation process for a project-based organization is proposed with 1) a goal model of a project-based VO, 2) a competency model of VO constituents, 3) an evaluation model of each constituent based on the goals of the VO, and 4) the formation process of the VO with selected constituents. Finally, contributions and limitations of the proposed model are presented with the further research issues.