The Black-Litterman Portfolio Selection Framework

PurposeThis research proposes a framework by which universities can define and implement projects that transform them into entrepreneurial universities. The framework helps decision-makers identify suitable goals and strategies, gather a list of projects to fulfill the goals and strategies and prioritize the projects and form a portfolio.Design/methodology/approachIn the proposed framework, importance–performance matrix, hierarchical strategic planning, Delphi technique, DEMATEL-based ANP and a multi-objective model are used. The mathematical model consists of four objective functions including efficiency, quality and balance maximization and also cost and risk minimization. The proposed framework is applied to Amirkabir University of Technology, Tehran, Iran, and the results are brought in this paper.FindingsThe output of the proposed framework is a portfolio of projects that aims to transform a traditional university into a third-generation one. Although the final portfolio must be customized for different universities, the proposed steps of the framework can be helpful for almost all cases.Originality/valueThe suggested framework is unique and uses both qualitative and quantitative techniques for project portfolio selection.

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The evolution of project portfolio selection methods: from incremental to radical innovation

Revista de Gestão ◽

10.1108/rege-10-2018-0096 ◽

2019 ◽

Vol 26 (3) ◽

pp. 212-236 ◽

Cited By ~ 2

Author(s):

Ximena Alejandra Flechas Chaparro ◽

Leonardo Augusto de Vasconcelos Gomes ◽

Paulo Tromboni de Souza Nascimento

Keyword(s):

Portfolio Selection ◽

Research Question ◽

Radical Innovation ◽

Project Portfolio ◽

Content Type ◽

Project Portfolio Selection ◽

Information Gap ◽

Innovation Projects ◽

Selection Framework ◽

Comprehensive Framework

Purpose The purpose of this paper is to identify how project portfolio selection (PPS) methods have evolved and which approaches are more suitable for radical innovation projects. This paper addressed the following research question: how have the selection approaches evolved to better fit within radical innovation conditions? The current literature offers a number of selection approaches with different and, in some cases, conflicting nature. Therefore, there is a lack of understanding regarding when and how to use these approaches in order to select a specific type of innovation projects (from incremental to more radical ones). Design/methodology/approach Given the nature of the research question, the authors perform a systematic literature review method and analyze 48 portfolio selection approaches. The authors then classified and characterized these articles in order to identify techniques, tools, required data and types of examined projects, among other aspects. Findings The authors identify four key features related to the selection of radical innovation projects: dynamism, interdependency management, uncertainty treatment and required input data. Based on the content analysis, the authors identified that approaches based on different sources and nature of data are more appropriated for uncertain conditions, such as behavioral methods, information gap theory, real options and integrated approaches. Originality/value The research provides a comprehensive framework about PPS methods and how they have been evolving over time. This portfolio selection framework considers the particular aspects of incremental and radical innovation projects. The authors hope that the framework contributes to reinvigorating the literature on selection approaches for innovation projects.

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