2018
DOI: 10.1111/deci.12310
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Human Behavior in Project Portfolio Selection: Insights from an Experimental Study

Abstract: Choosing the right subset from a set of candidate projects is a key driver of success and failure in new product development (NPD). In many cases, managers make these decisions based on intuition or simple rules. We investigate how human decision makers act in the context of project portfolio selection conducting experimental studies based on the knapsack problem. We address the question about which decision rules people apply to select a portfolio and how cognitive limitations influence their selection proces… Show more

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Cited by 27 publications
(19 citation statements)
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“…However, they focus on the impact of the uncertainties associated with new product development projects, buyer risk aversion, and buying firm's effort share on contractual decisions. Schiffels, Fliedner, and Kolisch () conduct experiments to understand the impact of cognitive limitations on portfolio selection of new product development projects. Studies into the biases toward and impacts associated with the reduction of certain aspects of new product cycle times (Bendoly & Chao, 2016) have shed light on traps common to innovation processes.…”
Section: Literature Classification Based On Operations Contextsmentioning
confidence: 99%
“…However, they focus on the impact of the uncertainties associated with new product development projects, buyer risk aversion, and buying firm's effort share on contractual decisions. Schiffels, Fliedner, and Kolisch () conduct experiments to understand the impact of cognitive limitations on portfolio selection of new product development projects. Studies into the biases toward and impacts associated with the reduction of certain aspects of new product cycle times (Bendoly & Chao, 2016) have shed light on traps common to innovation processes.…”
Section: Literature Classification Based On Operations Contextsmentioning
confidence: 99%
“…A number of works in the field (e.g., Tetlock, 2007; Henry, 2008; Tetlock et al., 2008; Loughran & McDonald, 2011) treat all financial disclosures alike, without considering a potential heterogeneity in the reception across topics. Our work, however, is positioned around recent analyses in finance‐related research according to which the response to financial materials cannot be assumed to be independent of decision‐making strategies (Schiffels, Fliedner, & Kolisch, 2018; Taylor, 1975). Instead, researchers must accurately identify and account for such confounding factors in order to achieve rigor.…”
Section: Discussionmentioning
confidence: 99%
“…An organization's capability can be understood through its ability to support project operations ( [132,133]). Balanced resource management helps in the better allocation and the sustainability of resource use [134].…”
Section: Resources Capability Managementmentioning
confidence: 99%