Project Selection in the Portfolio of Projects Using Economic and Non-economic Criteria and Using Fuzzy Logic

Document Type : Applied Article

Authors
Mohammad Ebrahim Tayebi Araghi 1
Seyed javad Sayedian Hashemi 2
ali Ghasemi kian 3
1 Assistant Professor, Department of Industrial Engineering, khorramshahr international Branch, Islamic Azad University, khorramshahr, Iran
2 M.Sc., Department of Industrial Engineering, khorramshahr international Branch, Islamic Azad University, khorramshahr, Iran
3 industrial engineering, khaje nasi, tehran, iran
Abstract
Optimizing project portfolio management is recognized as a key factor in maintaining competitive advantage and achieving the strategic objectives of project-oriented organizations. However, many conventional project selection models either focus solely on economic criteria or lack a systematic framework for simultaneously integrating qualitative, non-economic criteria under conditions of uncertainty. Aiming to bridge this gap, this study presents and validates a novel fuzzy-based multi-criteria decision-making model for project selection in project-oriented companies. The research employed an applied methodology with a descriptive-survey approach, utilizing the fuzzy Delphi technique among 30 experts from Tavan Azaran Arvand Engineering Company. The six-criteria framework of the study (including Financial-Economic, Strategic Requirements, Technical, Project Risk, Human Resources, and Project Environment) was evaluated through fuzzy questionnaires and analyzed using the Fuzzy TOPSIS method and regression analysis. The findings revealed that the 'Strategic Requirements' criterion, with a final weight of 0.553, is the most important factor, while 'Human Resources', with an impact factor of 0.571, is the strongest predictor of success in project selection. Furthermore, the conducted sensitivity analysis confirmed the stability and reliability of the model. The primary innovation of this study lies in the simultaneous integration of six key economic and non-economic dimensions into a unified fuzzy model, its practical validation within the context of an Iranian project-oriented company, and the addition of systematic sensitivity analysis. This model serves as an efficient tool to assist managers in making project selection decisions based on a balance between economic justification and strategic-human requirements in an uncertain environment.
Keywords
Project selection
Portfolio of projects
Economic and non-economic criteria
Fuzzy logic
Subjects
  1. Silvius, G., & Marnewick, C. (2022). Interlinking Sustainability in Organizational Strategy, Project Portfolio Management and Project Management: A Conceptual Framework. Procedia Computer Science, 196, 938-947.
  2. Cordeiro, G., Vasconcelos, A., & Fragoso, B. (2021). Reference Architecture for Project, Program and Portfolio Governance. در International Conference on Project Management. Springer, Cham. (804-832).
  3. Derakhshan, R., Turner, R., & Mancini, M. (2019). Project governance and stakeholders: A literature review. International Journal of Project Management, 37(1), 98-116.
  4. Mohagheghi, V., Mousavi, S. M., & Vahdani, B. (2020). A new multi-objective optimization approach for sustainable project portfolio selection: A real-world application under interval-valued fuzzy uncertainty. Iranian Journal of Fuzzy Systems, 17(1), 15-37.
  5. Salvi, M., et al. (2024). An integrated fuzzy ANP-TOPSIS framework for sustainable project portfolio selection in the digital transformation era. Journal of Cleaner Production, 434, 140123.
  6. Chen, L., & Wang, Y. (2024). A hybrid decision-making model for R&D project portfolio selection considering interdependencies and risk propagation under uncertainty. Expert Systems with Applications, 238, 121756.
  7. Kumar, A., et al. (2025). AI-enhanced fuzzy logic for dynamic project prioritization in agile portfolios. International Journal of Project Management, 43(1), 102-118.
  8. Abbasi, M. Ashrafi, M. Khairkhah, A. Fundad, H. Gurbanzadeh Karimi, H. (2012). Selection of research and development project portfolio using a data envelopment analysis-balanced scorecard hybrid model. Science and Technology Policy, 5(3), 67-82. (In Persian).
  9. Cordeiro, G. Vasconcelos, A. Fragoso, B. (2021). Reference Architecture for Project, Program and Portfolio Governance. Springer: Cham, Switzerland, pp. 804-832.
  10. Silvius, G. Marnewick, C. (2022). Interlinking Sustainability in Organizational Strategy, Project Portfolio Management and Project Management a Conceptual Framework. Procedia Computer Science, (196), 938-947.
  11. Akbari, N, Amirkhani, Amirhossein, k. (2020). investigating the relationship between the competencies of project managers based on the ICB standard and project management processes based on the PMBOK standard in project-oriented organizations, https: //civilica. com/doc/1610605.
  12. Martinsuo, M. & Geraldi, J. (2020). Management of project portfolios: Relationships of project portfolios with their contexts. International Journal of Project Management, 38(7), 441-453.
  13. Jiménez, V. Afonso, P. Fernandes, G. (2020). Using agile project management in the design and implementation of activity-based costing systems. Sustainability, 12(24), 10352.
  14. Salwin, M. Jacyna-Gołda, I., Kraslawski, A., & Waszkiewicz, A. E. (2022). The use of business model canvas in the design and classification of product-service systems design methods. Sustainability, 14(7), 4283.
  15. Nozarpour Shami, Z. Farkhian, F. Eslami, A. (2018). Health, Safety and Environment Management System (HSE-MS) in hospitals, 7th National Conference on Management and Humanities Research in Iran, Tehran, https: //civilica. com/doc/1022667.
  16. Mosadeghrad A M, Jaafaripooyan E, Yousefinezhadi T, Keykhani S. Hospital accreditation method: A comparative study. Payesh 2020; 19 (5):523-540.
  17. Etgar, R. Cohen, Y. Roadmap Optimization: Multi-Annual Project Portfolio Selection Method. Mathematics 2023, 10, 1601. https://doi.org/10.3390/math10091601.
  18. Alinejad, A. Simiari, K. (2012). Choosing the optimal project portfolio using DEA/DEMATEL integrated approach, Industrial Management Studies Quarterly, No. 28, pp. 41-60.

  • Receive Date 21 October 2025
  • Revise Date 01 December 2025
  • Accept Date 28 December 2025