New product development (NPD) project portfolio management: What is the role of learning?

Abstract

Project portfolio management is a strategic weapon. Despite, the abundant amount of literature on research and development (R&D) project evaluation and selection, earlier research does not exploit the potential of learning even if it may generate significant opportunities. The aim of this paper is to deepen the knowledge on how a learning process could favor the selection and management of projects to include in the portfolio, considering the relevance of strategic orientation. Grounded on learning the concept of pragmatic constructivism (PC), this paper presents a qualitative and interpretative approach conducted in a single case study. The selected company is a multinational, operating in the semiconductor industry. Data were collected by combining different sources such as semi-structured interviews, direct observation, meeting participation and use of archival sources. The results show that the role played by previous learning can provide very useful information for division managers in the company to pick up the best project to include in the portfolio, which meet business strategic priorities. The results provide some practical implications in supporting the decision-making process of division managers on how to choose the best project portfolio, meaning to pick up the right projects to increase the performance of the project portfolio as well as company performance.