Innovation Project Portfolio Management (IPPM) practices are a dynamic capability that providescompetitive advantage by dynamically adjusting the organisation?s portfolio of projects and resourceallocation profile for the best innovation outcomes. A relatively new body of empirical research intoIPPM practices is starting to generate findings related to IPPM practices and innovation outcomes.However this research is fragmented and lacks a unifying theoretical base. The resource-based view ofstrategy, in particular the dynamic capabilities approach, provides a theoretical framework to unifyIPPM research. A ?processes, positions and paths? perspective on IPPM practices helps to clarify theways that IPPM practices contribute to competitive advantage. Existing empirical research into theprocesses used for IPPM reveals some links to innovation outcomes, but does not try to explaincausality. Improved understanding of the mechanisms responsible for competitive advantage throughIPPM practices is found in research on positions (how IPPM processes draw upon and contribute to theunderlying resource position) and paths (the role of past decisions and organisational paths in shapingIPPM processes as well as future options and decisions).
