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R&D Project Selection Incorporating Customer-Perceived Value and Technology Potential: The Case of the Automobile Industry

Author

Listed:
  • Sungjoo Lee

    () (Department of Industrial Engineering, Ajou University, Suwon 16499, Korea)

  • Chanwoo Cho

    () (Electronics and Telecommunications Research Institute, Daejeon 34129, Korea)

  • Jaehong Choi

    () (Hyundai Motor Company, Hwaseong 18280, Korea)

  • Byungun Yoon

    () (Department of Industrial & Systems Engineering, Dongguk University, Seoul 04620, Korea)

Abstract

As user-centric innovation has recently emerged as a successful way of developing new products, services, and concepts, it is worth considering the perspectives of potential technology users during R&D project selection processes. Nevertheless, little effort has been made to reflect customer-perceived value in establishing selection criteria, with the focus mainly on technological potential instead. Therefore, this study aims to develop an R&D project selection model incorporating not only technological potential but also customer-perceived value. For this purpose, a new R&D project evaluation model and process is proposed, and its feasibility is tested by potential users in a real scenario. The automobile industry is suitable for our evaluation model because it is a B2C and system-based industry where customer needs are critical to market success and a number of R&D projects are proposed every year. Finally, a supporting tool is developed to help interact with various evaluators and visualize the evaluation results, as customer involvement is recommended for accurate project evaluation from the perspective of technology users. This study is one of the earliest attempts to reflect customer-perceived value in R&D project selection, and practically, the research outputs are expected to be useful to automobile manufacturers in creating value from R&D projects.

Suggested Citation

  • Sungjoo Lee & Chanwoo Cho & Jaehong Choi & Byungun Yoon, 2017. "R&D Project Selection Incorporating Customer-Perceived Value and Technology Potential: The Case of the Automobile Industry," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-18, October.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1918-:d:116074
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    References listed on IDEAS

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    1. Babin, Barry J. & Babin, Laurie, 2001. "Seeking something different? A model of schema typicality, consumer affect, purchase intentions and perceived shopping value," Journal of Business Research, Elsevier, vol. 54(2), pages 89-96, November.
    2. Matthew J. Liberatore & Anthony C. Stylianou, 1995. "Expert Support Systems for New Product Development Decision Making: A Modeling Framework and Applications," Management Science, INFORMS, vol. 41(8), pages 1296-1316, August.
    3. Melissa A. Schilling, 2009. "Protecting or Diffusing a Technology Platform: Tradeoffs in Appropriability, Network Externalities, and Architectural Control," Chapters, in: Annabelle Gawer (ed.), Platforms, Markets and Innovation, chapter 8, Edward Elgar Publishing.
    4. Dechezleprêtre, Antoine & Neumayer, Eric & Perkins, Richard, 2015. "Environmental regulation and the cross-border diffusion of new technology: Evidence from automobile patents," Research Policy, Elsevier, vol. 44(1), pages 244-257.
    5. Floh, Arne & Zauner, Alexander & Koller, Monika & Rusch, Thomas, 2014. "Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link," Journal of Business Research, Elsevier, vol. 67(5), pages 974-982.
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    Citations

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    Cited by:

    1. Seunghoon Lee & Young Hoon Lee & Yongho Choi, 2019. "Project Portfolio Selection Considering Total Cost of Ownership in the Automobile Industry," Sustainability, MDPI, Open Access Journal, vol. 11(17), pages 1-17, August.

    More about this item

    Keywords

    supporting system; project selection; customer-perceived value; technology potential; automobiles;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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