ABSTRACT
Even a best-performing organization requires a major improvement in project evaluation and selection (PES) methods as nearly half of initial new product development ideas occur informally or without a specific goal. In an organization, efficient PES requires trade-off among multiple criteria/dimensions such as maximizing revenues, optimizing resources, and minimizing risks. Researchers have been focusing on identification of these criteria or dimensions that are essential for evaluating a set of new portfolio projects. However, there is no exhaustive study, in terms of identification of evaluative criteria/dimensions for PES decisions and modeling them into a multicriteria decision-making (MCDM) model. Thus, in this study, we make such an attempt to fulfill this research gap. Accordingly, this study considers both qualitative and quantitative criteria/dimensions for PES decision in new product portfolio management (NPPM). Furthermore, this study proposes an MCDM model by integrating data envelopment analysis (DEA) and balanced scorecard (BSC) model (called as DEA–BSC model) for PES decision in NPPM. The proposed DEA–BSC model is demonstrated by developing suitable numerical example. The proposed MCDM model is expected to assist decision maker for selecting the right set of projects with higher development potential to maximize profitability and minimize the associated risk.
