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Identification and Prioritisation of Risk Factors in R&D Projects Based on an R&D Process Model

Author

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  • Junseok Shin

    (Department of Systems Management Engineering, Sungkyunkwan University, 2066, Seobu-ro, Jangan-gu, Suwon-si, Gyeonggi-do 16419, Korea)

  • Sungjoo Lee

    (Department of Industrial Engineering, School of Engineering, Ajou University, Woncheon-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do 16499, Korea)

  • Byungun Yoon

    (Department of Industrial & Systems Engineering, School of Engineering, Dongguk University, 30, Pil-dong-ro, Chung-gu, Seoul 04620, Korea)

Abstract

Although the importance of risk management and failure management has been emphasized in many organizations for sustainable development, most of the related studies have dealt with manufacturing or service processes, rather than R&D processes. Since R&D projects have high uncertainty in schedule and the quality of output, more attention should be paid to manage the risks of R&D activities. Thus, this paper proposes a systemic approach to performing R&D failure and risk management in the R&D process. To these ends, failure mode and effect analysis (FMEA) is employed, and is modified to meet the specific features of R&D activities with a stage-gate model that can identify the failure modes in each stage of the R&D process model. In addition, a process to prioritize the risks of R&D failure is suggested to support a decision-making process in R&D management, by applying the decision-making trial and evaluation laboratory (DEMATEL). The proposed approach is applied to a case of R&D process of a software development company, in order to illustrate its validity. This paper can help R&D managers to identify and cope with the risks in the R&D process by employing a systematic method.

Suggested Citation

  • Junseok Shin & Sungjoo Lee & Byungun Yoon, 2018. "Identification and Prioritisation of Risk Factors in R&D Projects Based on an R&D Process Model," Sustainability, MDPI, vol. 10(4), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:972-:d:138207
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    References listed on IDEAS

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    1. Teller, Juliane & Kock, Alexander & Gemünden, Hans Georg, 2014. "Risk Management in Project Protfolios is More than Managing Project Risks: A Contingency Perspective on Risk Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 76148, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Cooper, Robert G., 1990. "Stage-gate systems: A new tool for managing new products," Business Horizons, Elsevier, vol. 33(3), pages 44-54.
    3. Bai, Chunguang & Sarkis, Joseph, 2013. "A grey-based DEMATEL model for evaluating business process management critical success factors," International Journal of Production Economics, Elsevier, vol. 146(1), pages 281-292.
    4. Shai Bernstein, 2015. "Does Going Public Affect Innovation?," Journal of Finance, American Finance Association, vol. 70(4), pages 1365-1403, August.
    5. Wang, Juite & Yang, Chung-Yu, 2012. "Flexibility planning for managing R&D projects under risk," International Journal of Production Economics, Elsevier, vol. 135(2), pages 823-831.
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    7. Lefley, Frank, 1997. "Approaches to risk and uncertainty in the appraisal of new technology capital projects," International Journal of Production Economics, Elsevier, vol. 53(1), pages 21-33, November.
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    Cited by:

    1. Baxter, David & Trott, Paul & Ellwood, Paul, 2023. "Reconceptualising innovation failure," Research Policy, Elsevier, vol. 52(7).

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