Purpose This paper aims to provide a practical model usable by organizations to help form agile virtual enterprises. The model helps to integrate a variety of factors, tangible and intangible, strategic and operational, for decision‐making purposes. Design/methodology/approach A comprehensive development of factors is determined from the literature and an analytical network process (ANP) methodology is introduced for decision model development. An illustrative example is presented. Findings The results provide a robust model that will aid decision makers and agile virtual enterprise brokers form partnerships within these organizational structures. Research limitations/implications The paper introduces a conceptual model with an illustrative validating example. A practical application and reapplication of the model are required to further validate the model. ANP can require significant managerial input for its application, potentially causing fatigue for decision makers. Practical implications Practical implications include a partner selection tool and framework for decision makers. The model may be easily tweaked by the elimination or addition of decision factors and their relationships. Originality/value The paper is useful to practitioners and organizations seeking to manage partnership formation of agile virtual enterprises, an emerging organizational form. This work expands the number of factors and interrelationships among these factors that no other model has explicitly addressed for the agile virtual enterprise formation situation.
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