A METHODOLOGY TO EVALUATE ENTERPRISES TO BECOME MEMBERS OF VIRTUAL INDUSTRY CLUSTERS Daniel Caballero CSIM-ITESM, dcaballe@lce.mtv.itesm.mx. MEXICO Arturo Molina CSIM-ITESM. armolina@campus.mtv.itesm.mx, MEXICO Thomas Bauemhansl WZL- RWTH Aachen, ban@wzi.IWfh-aachen.de, GERMANY Based on the Framework for Global Virtual Business developed by the COSME Network, the partners for a Virtual Enterprise (VE) has to be selected from members of a Virtual Industry Cluster (VIC). This paper describes /) major issues involved in evaluating possible members of the VIC, i.e. core competencies {products, process, and technologies) and infrastructures {information, social, legal and physical), 2) a methodology to select members for a VIC based on quantitative and qualitative analysis. This methodology integrates a set of benchmarking tools to evaluate enterprise's competencies and infrastructures. A case study was undertaken to create VIC of Metal Mechanical and Plastics Industry in Monterrey, Mexico. A WWW page was created to describe member's key information on competencies and infrastructures. 1. INTRODUCTION Clusters are geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure (Porter, 1998). In a similar manner, Virtual Industry Clusters (VIC) are virtual concentrations of interconnected companies and institutions in any field. The main characteristics to qualify in these clusters are complementary core competencies of entities. Finally, the VIC is supported by information technology infrastructure that overcomes the restriction of geographic proximity (Molina, 1998), (Eversheim, 1998). For the Small and Medium Enterprises (SME's) advantages of using the Virtual Enterprise Concept are promising, because with this approach SME's can fulfill new opportunities and develop new markets with little or no investments. For this reason the COSME (Cooperation for Small and Medium Enterprises) Network has been The original version of this chapter was revised: The copyright line was incorrect. This has been corrected. The Erratum to this chapter is available at DOI: © IFIP International Federation for Information Processing 2001 L. M. Camarinha-Matos et al. (eds.), E-Business and Virtual Enterprises 10.1007/978-0-387-35399-9_52