In an increasingly dynamic competitive environment, innovation andorganisational renewal are essential for organisational survival. Anorganisation?s project portfolio management (PPM) practices are responsiblefor the effective deployment of the innovation strategy. PPM practices providea holistic perspective for ongoing decision-making to maintain the mosteffective combination of projects for new product and service development.This paper outlines current research into the PPM practices used for newproduct development projects in a diverse range of industries. Results from aquestionnaire-based survey are reinforced by in-depth case studies ofsuccessful innovators. The case studies also provide a deeper understanding ofthe use and ongoing evolution of PPM in practice. PPM practices are shownto be a dynamic capability that, in combination with the underlying resourcebase, enables organisations to achieve competitive advantage. The findingsalso indicate that successful innovators possess valuable organisationallearning capabilities that enable dynamic capabilities like PPM to be adjustedto respond to changes in the environment.
