IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v170y2015ipap54-66.html
   My bibliography  Save this article

Using the strategic relative alignment index for the selection of portfolio projects application to a public Venezuelan Power Corporation

Author

Listed:
  • García-Melón, Mónica
  • Poveda-Bautista, Rocío
  • Del Valle M., José L.

Abstract

In this paper a new approach that uses the alignment of projects with corporate strategic objectives to prioritize project portfolio in an efficient and reliable way is presented. For this purpose, corporate strategic objectives will be used as prioritization criteria to obtain the Relative Alignment Index (RAI) of each project which indicates how close or far each project is from the strategic objectives of the company. The approach presented uses the Analytic Network Process. This technique allows considering the influences among all the elements within the network, that means, the strategic objectives, and specially the projects within a portfolio. The proposed RAI index helps to select the best strategically aligned projects for the organization. The proposed RAI index and its form of evaluation have not previously been considered in the project portfolio literature until now.

Suggested Citation

  • García-Melón, Mónica & Poveda-Bautista, Rocío & Del Valle M., José L., 2015. "Using the strategic relative alignment index for the selection of portfolio projects application to a public Venezuelan Power Corporation," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 54-66.
    • Handle: RePEc:eee:proeco:v:170:y:2015:i:pa:p:54-66
    DOI: 10.1016/j.ijpe.2015.08.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315003199
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.08.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pedro Godinho & Joao Paulo Costa & Joana Fialho & Ricardo Afonso, 2011. "Some issues about the application of the analytic hierarchy process to R&D project selection," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 13(1), pages 26-41.
    2. Mavrotas, G. & Diakoulaki, D. & Caloghirou, Y., 2006. "Project prioritization under policy restrictions. A combination of MCDA with 0-1 programming," European Journal of Operational Research, Elsevier, vol. 171(1), pages 296-308, May.
    3. Smith-Perera, Aida & García-Melón, Mónica & Poveda-Bautista, Rocío & Pastor-Ferrando, Juan-Pascual, 2010. "A Project Strategic Index proposal for portfolio selection in electrical company based on the Analytic Network Process," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1569-1579, August.
    4. Nigim, K. & Munier, N. & Green, J., 2004. "Pre-feasibility MCDM tools to aid communities in prioritizing local viable renewable energy sources," Renewable Energy, Elsevier, vol. 29(11), pages 1775-1791.
    5. 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.
    6. Bergeron, François & Raymond, Louis & Rivard, Suzanne, 2001. "Fit in strategic information technology management research: an empirical comparison of perspectives," Omega, Elsevier, vol. 29(2), pages 125-142, April.
    7. Tan, Kim Hua & Noble, James & Sato, Yuji & Tse, Ying Kei, 2011. "A marginal analysis guided technology evaluation and selection," International Journal of Production Economics, Elsevier, vol. 131(1), pages 15-21, May.
    8. Erdogmus, Senol & Aras, Haydar & Koç, Eylem, 2006. "Evaluation of alternative fuels for residential heating in Turkey using analytic network process (ANP) with group decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(3), pages 269-279, June.
    9. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    10. Davoudpour, Hamid & Rezaee, Sara & Ashrafi, Maryam, 2012. "Developing a framework for renewable technology portfolio selection: A case study at a R&D center," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4291-4297.
    11. Hua Tan, Kim & Peng Lim, Chee & Platts, Ken & Shen Koay, Hooi, 2006. "An intelligent decision support system for manufacturing technology investments," International Journal of Production Economics, Elsevier, vol. 104(1), pages 179-190, November.
    12. Dey, Prasanta Kumar, 2006. "Integrated project evaluation and selection using multiple-attribute decision-making technique," International Journal of Production Economics, Elsevier, vol. 103(1), pages 90-103, September.
    13. Karpak, Birsen & Topcu, Ilker, 2010. "Small medium manufacturing enterprises in Turkey: An analytic network process framework for prioritizing factors affecting success," International Journal of Production Economics, Elsevier, vol. 125(1), pages 60-70, May.
    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. Roychaudhuri, Pritam Sankar & Kazantzi, Vasiliki & Foo, Dominic C.Y. & Tan, Raymond R. & Bandyopadhyay, Santanu, 2017. "Selection of energy conservation projects through Financial Pinch Analysis," Energy, Elsevier, vol. 138(C), pages 602-615.
    2. Fahime Lotfian Delouyi & Seyed Hassan Ghodsypour & Maryam Ashrafi, 2021. "Dynamic Portfolio Selection in Gas Transmission Projects Considering Sustainable Strategic Alignment and Project Interdependencies through Value Analysis," Sustainability, MDPI, vol. 13(10), pages 1-25, May.
    3. Quezada, Luis E. & López-Ospina, Héctor A. & Ortiz, César & Oddershede, Astrid M. & Palominos, Pedro I. & Jofré, Paulina A., 2022. "A DEMATEL-based method for prioritizing strategic projects using the perspectives of the Balanced Scorecard," International Journal of Production Economics, Elsevier, vol. 249(C).
    4. Kheybari, Siamak & Rezaie, Fariba Mahdi & Farazmand, Hadis, 2020. "Analytic network process: An overview of applications," Applied Mathematics and Computation, Elsevier, vol. 367(C).
    5. Wu, Yunna & Xu, Chuanbo & Ke, Yiming & Li, Xinying & Li, Lingwenying, 2019. "Portfolio selection of distributed energy generation projects considering uncertainty and project interaction under different enterprise strategic scenarios," Applied Energy, Elsevier, vol. 236(C), pages 444-464.

    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. 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.
    2. Shen, Yung-Chi & Chou, Chiyang James & Lin, Grace T.R., 2011. "The portfolio of renewable energy sources for achieving the three E policy goals," Energy, Elsevier, vol. 36(5), pages 2589-2598.
    3. Chen, Hsing Hung & Kang, He-Yau & Lee, Amy H.I., 2010. "Strategic selection of suitable projects for hybrid solar-wind power generation systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 413-421, January.
    4. Sato, Yuji, 2012. "Optimal budget planning for investment in safety measures of a chemical company," International Journal of Production Economics, Elsevier, vol. 140(2), pages 579-585.
    5. Kaytez, Fazıl, 2022. "Evaluation of priority strategies for the expansion of installed wind power capacity in Turkey using a fuzzy analytic network process analysis," Renewable Energy, Elsevier, vol. 196(C), pages 1281-1293.
    6. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Khalifah, Zainab & Zakuan, Norhayati & Jusoh, Ahmad & Nor, Khalil Md & Khoshnoudi, Masoumeh, 2017. "A review of multi-criteria decision-making applications to solve energy management problems: Two decades from 1995 to 2015," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 216-256.
    7. Çolak, Murat & Kaya, İhsan, 2017. "Prioritization of renewable energy alternatives by using an integrated fuzzy MCDM model: A real case application for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 840-853.
    8. Doljak, Dejan & Stanojević, Gorica, 2017. "Evaluation of natural conditions for site selection of ground-mounted photovoltaic power plants in Serbia," Energy, Elsevier, vol. 127(C), pages 291-300.
    9. 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.
    10. A H I Lee & H H Chen & H-Y Kang, 2009. "Operations management of new project development: innovation, efficient, effective aspects," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(6), pages 797-809, June.
    11. Sato, Yuji & Tan, Kim Hua & Tse, Ying Kei, 2017. "Investment performance analysis of industrial products: Case of an effluent processing facility at a chemical company," International Journal of Production Economics, Elsevier, vol. 194(C), pages 52-58.
    12. Jamal, Taskin & Urmee, Tania & Shafiullah, G.M., 2020. "Planning of off-grid power supply systems in remote areas using multi-criteria decision analysis," Energy, Elsevier, vol. 201(C).
    13. Büyüközkan, Gülçin & Güleryüz, Sezin, 2017. "Evaluation of Renewable Energy Resources in Turkey using an integrated MCDM approach with linguistic interval fuzzy preference relations," Energy, Elsevier, vol. 123(C), pages 149-163.
    14. Schaller, Lena & Targetti, Stefano & Villanueva, Anastasio J. & Zasada, Ingo & Kantelhardt, Jochen & Arriaza, Manuel & Bal, Tufan & Fedrigotti, Valérie Bossi & Giray, F. Handan & Häfner, Kati & Majews, 2018. "Agricultural landscapes, ecosystem services and regional competitiveness—Assessing drivers and mechanisms in nine European case study areas," Land Use Policy, Elsevier, vol. 76(C), pages 735-745.
    15. Ahadi, Pedram & Fakhrabadi, Farbod & Pourshaghaghy, Alireza & Kowsary, Farshad, 2023. "Optimal site selection for a solar power plant in Iran via the Analytic Hierarchy Process (AHP)," Renewable Energy, Elsevier, vol. 215(C).
    16. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Decision analysis in energy and environmental modeling: An update," Energy, Elsevier, vol. 31(14), pages 2604-2622.
    17. Chiranjib Bhowmik & Sumit Bhowmik & Amitava Ray, 2020. "Optimal green energy source selection: An eclectic decision," Energy & Environment, , vol. 31(5), pages 842-859, August.
    18. Aragones-Beltran, P. & Aznar, J. & Ferris-Onate, J. & Garcia-Melon, M., 2008. "Valuation of urban industrial land: An analytic network process approach," European Journal of Operational Research, Elsevier, vol. 185(1), pages 322-339, February.
    19. Aragonés-Beltrán, P. & Chaparro-González, F. & Pastor-Ferrando, J.P. & Rodríguez-Pozo, F., 2010. "An ANP-based approach for the selection of photovoltaic solar power plant investment projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 249-264, January.
    20. Liu, Guiwen & Zheng, Saina & Xu, Pengpeng & Zhuang, Taozhi, 2018. "An ANP-SWOT approach for ESCOs industry strategies in Chinese building sectors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 90-99.

    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:eee:proeco:v:170:y:2015:i:pa:p:54-66. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.