Developing project portfolio management model for innovation projects using grounded theory: a case of Iran’s power industry

The aim of the article. Survival in a dynamic competitive environment often requires consistent produce of successful new product and services; therefore, implementing an effective Project Portfolio Management (PPM) in the organization can improve innovation decisions and outcomes of new products, thereby lead to higher competitive advantage. This Paper aims at discovering the causal relationship of Innovation Project Portfolio Management (IPPM) performance.The results of the analysis. Qualitative research design was chosen for this study and through using semi-structured and in-depth interviews with 24 experts in five Iranian organizations producing equipment of the power industry, we use a grounded theory approach to develop a general model of what drives IPPM in detail and how these causes are related to effects on both project performance and business performance.According to the findings from these qualitative data, effective IPPM is the result of three areas of capabilities: IPPM Process, IPPM structure, IPPM people. These causal relationships are moderated by project context. Also the findings show that performance of IPPM consist of an integrated elements of Strategic alignment, portfolio balance, resource fit and value maximization. In the other hand, IPPM performance has influences on project performance and business performance. Finally, a set of propositions regarding the key performance drivers of IPPM were developed.Conclusions and directions of further researches. In conclusion, this study contributes new insights to the emerging research on IPPM. While most IPPM literature is still a theoretical, this paper develops IPPM in the context of the Iran's power industry. The qualitative research design used in this paper was appropriate for gaining an in-depth understanding how the IPPM capabilities and project context, and certain performance constructs are linked to each other. Our interviews revealed the importance of integrating model consist of the IPPM capabilities and project context.This study reveals potential relationships between identified independent and dependent constructs aiming to sophistically extend the current knowledge of IPPM. Consequently, this paper provides a framework for future empirical research in other industries in developing countries, which will potentially have significant implications for academia and managerial practice.