A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps

article A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps published Mehdi Namazi author Madjid Tavana author 31858 Emran Mohammadi author Ali Bonyadi Naeini author 277 department PurposeNew business practices and the globalization of markets force firms to take innovation as the fundamental pillar of their competitive strategy. Research and Development (R&D) plays a vital role in innovation. As technology advances and product life cycles become shorter, firms rely on R&D as a strategy to invigorate innovation. R&D project portfolio selection is a complex and challenging task. Despite the management's efforts to implement the best project portfolio selection practices, many projects continue to fail or miss their target. The problem is that selecting R&D projects requires a deep understanding of strategic vision and technical capabilities. However, many decision-makers lack technological insight or strategic vision. This article aims to provide a method to capitalize on the expertise of R&D professionals to assist managers in making informed and effective decisions. It also provides a framework for aligning the portfolio of R&D projects with the organizational vision and mission.Design/methodology/approachThis article proposes a new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps.FindingsThe proposed strategy plane helps decision-makers align R&D project portfolios with their strategies to combine a strategic view and numerical analysis in this research. The proposed strategy plane consists of four areas: Exploitation Zone, Challenge Zone, Desperation Zone and Discretion Zone. Mapping the project into this strategic plane would help decision-makers align their project portfolio according to the corporate perspectives.Originality/valueThe new approach combines the efficiency and uncertainty dimensions in portfolio selection into an integrated framework that: (i) provides a complete representation of the stochastic decision-making processes, (ii) models the endogenous uncertainty inherent in the project selection process and (iii) proposes a computationally practical and visually unique solution procedure for classifying desirable and undesirable R&D projects. Emerald2023 eng Business and International ManagementStrategy and Management Benchmarking: An International Journal 1463-577110.1108/bij-02-2022-0129 30104193-4220 Namazi M, Tavana M, Mohammadi E, Bonyadi Naeini A. A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps. Benchmarking: An International Journal. 2023;30(10):4193-4220. doi:<a href="https://doi.org/10.1108/bij-02-2022-0129">10.1108/bij-02-2022-0129</a> Namazi, Mehdi, Madjid Tavana, Emran Mohammadi, and Ali Bonyadi Naeini. “A New Strategic Approach for R&D Project Portfolio Selection Using Efficiency-Uncertainty Maps.” Benchmarking: An International Journal 30, no. 10 (2023): 4193–4220. <a href="https://doi.org/10.1108/bij-02-2022-0129">https://doi.org/10.1108/bij-02-2022-0129</a>. M. Namazi, M. Tavana, E. Mohammadi, and A. Bonyadi Naeini, “A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps,” Benchmarking: An International Journal, vol. 30, no. 10, pp. 4193–4220, 2023, doi: <a href="https://doi.org/10.1108/bij-02-2022-0129">10.1108/bij-02-2022-0129</a>. Namazi, M., Tavana, M., Mohammadi, E., & Bonyadi Naeini, A. (2023). A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps. Benchmarking: An International Journal, 30(10), 4193–4220. <a href="https://doi.org/10.1108/bij-02-2022-0129">https://doi.org/10.1108/bij-02-2022-0129</a> M. Namazi, M. Tavana, E. Mohammadi, A. Bonyadi Naeini, Benchmarking: An International Journal 30 (2023) 4193–4220. Namazi, Mehdi, et al. “A New Strategic Approach for R&D Project Portfolio Selection Using Efficiency-Uncertainty Maps.” Benchmarking: An International Journal, vol. 30, no. 10, Emerald, 2023, pp. 4193–220, doi:<a href="https://doi.org/10.1108/bij-02-2022-0129">10.1108/bij-02-2022-0129</a>. @article{Namazi_Tavana_Mohammadi_Bonyadi Naeini_2023, title={A new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps}, volume={30}, DOI={<a href="https://doi.org/10.1108/bij-02-2022-0129">10.1108/bij-02-2022-0129</a>}, number={10}, journal={Benchmarking: An International Journal}, publisher={Emerald}, author={Namazi, Mehdi and Tavana, Madjid and Mohammadi, Emran and Bonyadi Naeini, Ali}, year={2023}, pages={4193–4220} } 532322024-04-04T14:03:24Z2024-05-28T09:31:36Z