Abstract: Under the complicated environment, Vvirtual Eenterprise(VE) is a competitive organization for because of its ability of rapidly responding to the market. In VE, how to measure the degree of virtualization(DV) and how to use DV explain the VE’ evolution process are the core issue to be solved urgently. So, the article applies the classical grounded theory and focuses on typical VE cases. In cases, Tthere are 20 enterprises including 3 enterprises companies’ development stages defined were used as an this article’s main logic line core cases and other 17 enterprises companies regarded as the complements to study the Degree of Virtualization(DV). The article applied the Classical Grounded Theory, has found that the The conception of DV is a key to answer solve the problems of virtualization. It also finds that DV plays an important role in virtual evolution process. DV DV is constructed by three indexesdimensionalities: function DV, production DV, and information platform. After deeply qualitative research of DV’s composition system and formation mechanism, combined text vector space model, The the article formulated a theoretical model of DV measuring and examined the index system with regression testing model and the soft EVIEWS. research utilizes the index system to evaluate DV. Then, the theoretical model of measuring DV is composed of the text vector space model. According to the model, the virtual operation enterprise (VOE) and the VE are different stages in virtual evolution process. To further examine its reliability and validity, regression testing model is built up. Finally, the research has achieved to measure the virtualization level quantitatively, enriches the literature of VE studies. providedIt also lays a solid theoretical foundation to clearly deep understand the phenomenon of the enterprises organizational virtualization evolution phenomenon of VEand promote further study of VE.

Key words: classical grounded theory, virtual enterprise, degree of virtualization, DV measurement