An interactive systematic hierarchy model for strategic R&D decision making in a dynamic environment

An interactive systematic hierarchy (ISH) model is developed by synthesising the systems approach and the analytic hierarchy process. It is applied to strategic R&D decision making in a dynamic environment. The analysis systematically structures the interdependent decision making tasks associated with such problems into hierarchical intermediate modules. Identification of appropriate criteria is shown to depend on individual task environments, with modular decision constrained to be consistent over time with criteria thus obtained as well as the firm's strategic objectives.