Using Analytic Network Process to Establish Performance Evaluation Indicators for the R&D Management Department in Taiwan’s High‐tech Industry Available to Purchase

The high‐tech industry is the economic lifeline for Taiwan. Its characteristics are short product life cycle, rapid changes in the market, and a high obsolescence rate for new products. Under globalization, the high‐tech industry has adopted Information Technology (IT) to shorten the manufacturing process, reduce costs and conduct product research and development (R&D) to increase the core competence of enterprises and achieve the goal of sustainable operations. Enterprises should actively strengthen their integration with internal and external resources and lead in R&D management to increase industrial operating performance. Effectively managing operations and R&D management evaluation in Taiwan’s High‐tech Industry has become a critical subject. This study adopted 4 major Balanced Scorecard (BSC) perspectives to establish the Total Performance Evaluation Indicators for the R&D management department in Taiwan’s High‐tech Industry. The Analytic Network Process (ANP) was applied to evaluate the overall performance of the R&D management department. The research framework is divided into 2 phases. The first phase is combined with the 4 major perspectives, Financial, Customer, Internal Business Process and Learning and Growth, as the related indicators for each measurement perspective. The Key Performance Indicators (KPI) were selected using Factor Analysis to identify the key factor from the complicated indicators. The relationship between the characteristics of each BSC’s evaluation perspective is dependence and feedback. This study applied ANP to conduct the calculation and adjustment of correlation between each KPI, and determine on their relative weights for the objective KPI. The “Financial Perspective” for R&D management department in Taiwan’s High‐tech Industry focused on the budget achievement rate of R&D management. The weight indicator value is (0.05863). The “Customer Perspective” focused on problem‐solving satisfaction. The weight value of this indicator is (0.17549). The “Internal Business Process Perspective” focused on the quantity and quality of R&D. The weight value of this indicator is (0.13506). The “Learning and Growth Perspective” focused on improving competence in the research ersonnel’s professional techniques. The weight value of this indicator is (0.02789). From the total weighting indicators, the order of the Performance Indicators for the R&D management department in Taiwan’s High‐tech Industry is: (1) Customer Perspective; (2) Internal Business Process Perspective; (3) Financial Perspective; and (4) Learning and Growth Perspective.