IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p11626-d661413.html
   My bibliography  Save this article

MCDM-Based R&D Project Selection: A Systematic Literature Review

Author

Listed:
  • Dalton Garcia Borges de Souza

    (Division of Computer Science, Aeronautics Institute of Technology, São José dos Campos 12.228-900, Brazil
    Institute of Science and Technology, Federal University of Sao Paulo, São José dos Campos 12.247-014, Brazil
    Lorena School of Engineering, University of São Paulo, Lorena 12.602-810, Brazil)

  • Erivelton Antonio dos Santos

    (Institute of Industrial Engineering and Management, Federal University of Itajubá, Itajubá 37.500-903, Brazil
    Department of Administration Course, José do Rosário Vellano University, Alfenas 37.132-440, Brazil)

  • Nei Yoshihiro Soma

    (Division of Computer Science, Aeronautics Institute of Technology, São José dos Campos 12.228-900, Brazil
    Institute of Science and Technology, Federal University of Sao Paulo, São José dos Campos 12.247-014, Brazil
    Department of Mechanical Engineering, University of Taubate, Taubaté 12.020-270, Brazil)

  • Carlos Eduardo Sanches da Silva

    (Institute of Industrial Engineering and Management, Federal University of Itajubá, Itajubá 37.500-903, Brazil
    Secretariat of Higher Education, Ministry of Education, Brasília 70.047-900, Brazil)

Abstract

From small spin-offs deploying innovative software to big pharmaceutical complexes making vaccines, Research and Development (R&D) Project Portfolio Selection (PPS) is an essential strategic process for various companies. It was never easy to select a set of projects among many feasible possibilities, even for yesterday’s paces. However, the world is rapidly changing, and so is R&D PPS. The portfolio objectives excel profit in the same manner that model constraints go beyond budget limitations. In parallel, project selection approaches and solving algorithms followed the increase of computational power. Despite all those changes, the importance of Multi-Criteria Decision Making (MCDM) methods and the decision criteria used for R&D PPS, there is still room for a systematic literature review (SLR) for the topic. Thus, this paper offers an SLR of the existing literature from the half-century, 1970, and onward MCDM-based R&D PPS performed in Scopus and Web of Science Core Collection. We provide a comprehensive picture of this field, show how it is changing, and highlight standard practices and research opportunities in the area. We perform a broad classification of the MCDM methods, categorized by the nature of alternatives, types of integration approach, the MCDM method itself, and types of uncertainty, by the 66 studies in the SLR database. The portfolios’ classification obeys the application domain and the number of projects. We have also explored all the 263 criteria found in the literature by grouping them according to experts from five Brazilian R&D organizations that together manage portfolios valued around US$ 5 billion a year, accounting for 38% of all Brazilian annual expenditure in R&D projects. We also include a bibliometric analysis of the considered papers and research opportunities highlighted or not explored by researchers. Given the increasing number of decision-making approaches and new technologies available, we hope to provide guidance on the topic and promote knowledge production and growth concerning the usage of MCDM methods and decision criteria in R&D PPS.

Suggested Citation

  • Dalton Garcia Borges de Souza & Erivelton Antonio dos Santos & Nei Yoshihiro Soma & Carlos Eduardo Sanches da Silva, 2021. "MCDM-Based R&D Project Selection: A Systematic Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-34, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11626-:d:661413
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/11626/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/11626/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guilherme Augusto Barucke Marcondes & Rafael Coradi Leme & Marcela da Silveira Leme & Carlos Eduardo Sanches da Silva, 2017. "Using mean-Gini and stochastic dominance to choose project portfolios with parameter uncertainty," The Engineering Economist, Taylor & Francis Journals, vol. 62(1), pages 33-53, January.
    2. Janne Gustafsson & Ahti Salo, 2005. "Contingent Portfolio Programming for the Management of Risky Projects," Operations Research, INFORMS, vol. 53(6), pages 946-956, December.
    3. Theodor J. Stewart, 2016. "Multiple objective project portfolio selection based on reference points," Journal of Business Economics, Springer, vol. 86(1), pages 23-33, January.
    4. Keeney,Ralph L. & Raiffa,Howard, 1993. "Decisions with Multiple Objectives," Cambridge Books, Cambridge University Press, number 9780521438834, October.
    5. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhao, Jun-Hong, 2009. "Review on multi-criteria decision analysis aid in sustainable energy decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2263-2278, December.
    6. Ananda, Jayanath & Herath, Gamini, 2009. "A critical review of multi-criteria decision making methods with special reference to forest management and planning," Ecological Economics, Elsevier, vol. 68(10), pages 2535-2548, August.
    7. Eilat, Harel & Golany, Boaz & Shtub, Avraham, 2008. "R&D project evaluation: An integrated DEA and balanced scorecard approach," Omega, Elsevier, vol. 36(5), pages 895-912, October.
    8. Tahir Conka & Ozalp Vayvay & Bahar Sennaroglu, 2008. "A combined decision model for R&D project portfolio selection," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 2(2), pages 190-202.
    9. Wang, Juite & Hwang, W.-L., 2007. "A fuzzy set approach for R&D portfolio selection using a real options valuation model," Omega, Elsevier, vol. 35(3), pages 247-257, June.
    10. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    11. Stewart, TJ, 1992. "A critical survey on the status of multiple criteria decision making theory and practice," Omega, Elsevier, vol. 20(5-6), pages 569-586.
    12. Chia-Hua Cheng & James J. H. Liou & Chui-Yu Chiu, 2017. "A Consistent Fuzzy Preference Relations Based ANP Model for R&D Project Selection," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    13. Heidenberger, Kurt, 1996. "Dynamic project selection and funding under risk: A decision tree based MILP approach," European Journal of Operational Research, Elsevier, vol. 95(2), pages 284-298, December.
    14. Karasakal, Esra & Aker, Pınar, 2017. "A multicriteria sorting approach based on data envelopment analysis for R&D project selection problem," Omega, Elsevier, vol. 73(C), pages 79-92.
    15. Aghaei Chadegani, Arezoo & Salehi, Hadi & Md Yunus, Melor & Farhadi, Hadi & Fooladi, Masood & Farhadi, Maryam & Ale Ebrahim, Nader, 2013. "A Comparison between Two Main Academic Literature Collections: Web of Science and Scopus Databases," MPRA Paper 46898, University Library of Munich, Germany, revised 18 Mar 2013.
    16. David Moher & Alessandro Liberati & Jennifer Tetzlaff & Douglas G Altman & The PRISMA Group, 2009. "Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement," PLOS Medicine, Public Library of Science, vol. 6(7), pages 1-6, July.
    17. Abbas Toloie Eshlaghy & Farshad Faezy Razi, 2015. "A hybrid grey-based k-means and genetic algorithm for project selection," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 18(2), pages 141-159.
    18. Medaglia, Andres L. & Graves, Samuel B. & Ringuest, Jeffrey L., 2007. "A multiobjective evolutionary approach for linearly constrained project selection under uncertainty," European Journal of Operational Research, Elsevier, vol. 179(3), pages 869-894, June.
    19. Ringuest, Jeffrey L. & Graves, Samuel B. & Case, Randy H., 2004. "Mean-Gini analysis in R&D portfolio selection," European Journal of Operational Research, Elsevier, vol. 154(1), pages 157-169, April.
    20. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    21. George J. Beaujon & Samuel P. Marin & Gary C. McDonald, 2001. "Balancing and optimizing a portfolio of R&D projects," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(1), pages 18-40, February.
    22. Pohekar, S. D. & Ramachandran, M., 2004. "Application of multi-criteria decision making to sustainable energy planning--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 8(4), pages 365-381, August.
    23. Hassanzadeh, Farhad & Nemati, Hamid & Sun, Minghe, 2014. "Robust optimization for interactive multiobjective programming with imprecise information applied to R&D project portfolio selection," European Journal of Operational Research, Elsevier, vol. 238(1), pages 41-53.
    24. Jahangirian, Mohsen & Eldabi, Tillal & Naseer, Aisha & Stergioulas, Lampros K. & Young, Terry, 2010. "Simulation in manufacturing and business: A review," European Journal of Operational Research, Elsevier, vol. 203(1), pages 1-13, May.
    25. Jeng, Don Jyh-Fu & Huang, Kuo-Hsin, 2015. "Strategic project portfolio selection for national research institutes," Journal of Business Research, Elsevier, vol. 68(11), pages 2305-2311.
    26. Fang, Yong & Chen, Lihua & Fukushima, Masao, 2008. "A mixed R&D projects and securities portfolio selection model," European Journal of Operational Research, Elsevier, vol. 185(2), pages 700-715, March.
    27. Stefan Hajkowicz & Kerry Collins, 2007. "A Review of Multiple Criteria Analysis for Water Resource Planning and Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(9), pages 1553-1566, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fatima-Zahra Eddoug & Rajaa Benabbou & Jamal Benhra, 2023. "Adapting P2M Framework for Innovation Program Management Through a Lean-Agile Approach," International Journal of Information Technology Project Management (IJITPM), IGI Global, vol. 14(1), pages 1-18, January.
    2. Dalton Garcia Borges de Souza & Erivelton Antonio dos Santos & Francisco Tarcísio Alves Júnior & Mariá Cristina Vasconcelos Nascimento, 2021. "On Comparing Cross-Validated Forecasting Models with a Novel Fuzzy-TOPSIS Metric: A COVID-19 Case Study," Sustainability, MDPI, vol. 13(24), pages 1-25, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Govindan, Kannan & Jepsen, Martin Brandt, 2016. "ELECTRE: A comprehensive literature review on methodologies and applications," European Journal of Operational Research, Elsevier, vol. 250(1), pages 1-29.
    2. Milford, James & Henrion, Max & Hunter, Chad & Newes, Emily & Hughes, Caroline & Baldwin, Samuel F., 2022. "Energy sector portfolio analysis with uncertainty," Applied Energy, Elsevier, vol. 306(PA).
    3. Büyüközkan, Gülçin & Güleryüz, Sezin, 2016. "An integrated DEMATEL-ANP approach for renewable energy resources selection in Turkey," International Journal of Production Economics, Elsevier, vol. 182(C), pages 435-448.
    4. Hojatollah Khedrigharibvand & Hossein Azadi & Dereje Teklemariam & Ehsan Houshyar & Philippe Maeyer & Frank Witlox, 2019. "Livelihood alternatives model for sustainable rangeland management: a review of multi-criteria decision-making techniques," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(1), pages 11-36, February.
    5. Diaz-Balteiro, L & González-Pachón, J. & Romero, C., 2017. "Measuring systems sustainability with multi-criteria methods: A critical review," European Journal of Operational Research, Elsevier, vol. 258(2), pages 607-616.
    6. Łuczak, Aleksandra & Kozera, Agnieszka, 2021. "A model to assess the development priorities of local administrations through the hierarchy of strategic factors," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 474-492.
    7. Domenech, B. & Ferrer-Martí, L. & Pastor, R., 2015. "Hierarchical methodology to optimize the design of stand-alone electrification systems for rural communities considering technical and social criteria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 182-196.
    8. Mohammad Rahman & Lena Jaumann & Nils Lerche & Fabian Renatus & Ann Buchs & Rudolf Gade & Jutta Geldermann & Martin Sauter, 2015. "Selection of the Best Inland Waterway Structure: A Multicriteria Decision Analysis Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(8), pages 2733-2749, June.
    9. Karatas, Mumtaz & Sulukan, Egemen & Karacan, Ilknur, 2018. "Assessment of Turkey's energy management performance via a hybrid multi-criteria decision-making methodology," Energy, Elsevier, vol. 153(C), pages 890-912.
    10. A. Psomas & I. Vryzidis & A. Spyridakos & M. Mimikou, 2021. "MCDA approach for agricultural water management in the context of water–energy–land–food nexus," Operational Research, Springer, vol. 21(1), pages 689-723, March.
    11. Wulf, David & Bertsch, Valentin, 2016. "A natural language generation approach to support understanding and traceability of multi-dimensional preferential sensitivity analysis in multi-criteria decision making," MPRA Paper 75025, University Library of Munich, Germany.
    12. Vasileiou, Margarita & Loukogeorgaki, Eva & Vagiona, Dimitra G., 2017. "GIS-based multi-criteria decision analysis for site selection of hybrid offshore wind and wave energy systems in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 745-757.
    13. Punys, P. & Radzevičius, A. & Kvaraciejus, A. & Gasiūnas, V. & Šilinis, L., 2019. "A multi-criteria analysis for siting surface-flow constructed wetlands in tile-drained agricultural catchments: The case of Lithuania," Agricultural Water Management, Elsevier, vol. 213(C), pages 1036-1046.
    14. Kajal Chatterjee & Sheikh Ahmed Hossain & Samarjit Kar, 2018. "Prioritization of project proposals in portfolio management using fuzzy AHP," OPSEARCH, Springer;Operational Research Society of India, vol. 55(2), pages 478-501, June.
    15. Baudry, Gino & Macharis, Cathy & Vallée, Thomas, 2018. "Can microalgae biodiesel contribute to achieve the sustainability objectives in the transport sector in France by 2030? A comparison between first, second and third generation biofuels though a range-," Energy, Elsevier, vol. 155(C), pages 1032-1046.
    16. Seunghoon Lee & Yongju Cho & Minjae Ko, 2020. "Robust Optimization Model for R&D Project Selection under Uncertainty in the Automobile Industry," Sustainability, MDPI, vol. 12(23), pages 1-15, December.
    17. Kulisic, Biljana & Dimitriou, Ioannis & Mola-Yudego, Blas, 2021. "From preferences to concerted policy on mandated share for renewable energy in transport," Energy Policy, Elsevier, vol. 155(C).
    18. Maria Rosaria Guarini & Fabrizio Battisti & Anthea Chiovitti, 2018. "A Methodology for the Selection of Multi-Criteria Decision Analysis Methods in Real Estate and Land Management Processes," Sustainability, MDPI, vol. 10(2), pages 1-28, February.
    19. Yamei Wang & Zhongwu Li & Zhenghong Tang & Guangming Zeng, 2011. "A GIS-Based Spatial Multi-Criteria Approach for Flood Risk Assessment in the Dongting Lake Region, Hunan, Central China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(13), pages 3465-3484, October.
    20. Babak Zolghadr-Asli & Omid Bozorg-Haddad & Maedeh Enayati & Xuefeng Chu, 2021. "A review of 20-year applications of multi-attribute decision-making in environmental and water resources planning and management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14379-14404, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11626-:d:661413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.