An analytic network process approach to partner selection for acquisition and development

Abstract

To cope with rapid technological change and the increasing R&D costs during a period of decreasing technology and product life cycles, acquisition and development (A&D) has been suggested to be an important method for high-tech firms to achieve higher economic returns. However, few studies have examined the operational problems of choosing a compatible A&D candidate from a pool of potential A&D candidates. To address this limitation, this study proposes an approach based on the analytic network process (ANP) to rank a set of potential A&D candidates within a multivariate set of attributes systematically. A total of 25 criteria were identified and used to construct the ANP model in which the final selection is based on the resulting priorities assigned to the A&D candidates. A case study of a semiconductor manufacturing company was conducted to illustrate the application of the proposed approach. The results indicated that the proposed ANP method can aid in A&D decision-making problems systematically.