Title

A Comprehensive Framework for Sustainable Project Portfolio Selection Based on Structural Equation Modeling

Document Type

Article

Publication Date

4-1-2014

DOI

https://doi.org/10.1002%2Fpmj.21404

Abstract

Project selection problems are inherently complex problems with multiple and often conflicting objectives. The complexity of project selection problems is due to the high number of projects from which a subset (portfolio) has to be chosen. Various analytical methods, ranging from the simple weighted sum to complex mathematical programming have been proposed to solving these problems. We propose an integrated approach for strategic and sustainable project portfolio selection, which is composed of two distinct but interrelated modules. In the first module, we use the strategic planning and sustainability concepts to select a set of promising projects. In the second module, we use a project portfolio selection procedure to choose among the promising projects identified in the first module. A structural equation model is used to analyze and explain the relationships among different factors in the proposed framework. More specifically, we investigate the effects of: (1) strategic level performance on sustainability, post-implementation, and overall performance; (2) implementation performance on post-implementation and overall performance; (3) portfolio selection performance on implementation and overall performance; and (4) post-implementation performance on overall performance. A case study in investment banking is presented to demonstrate the applicability of the proposed model and exhibit the efficacy of the procedures and algorithms.

Language

English

Comments

FKhalili-Damghani, K. and Tavana, M. (2014) ‘A Comprehensive Framework for Sustainable Project Portfolio Selection Based on Structural Equation Modeling,’ Project Management Journal, Vol. 45, No. 2, pp. 308-319.

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