Managing the new product development project portfolio: A review of the literature and empirical evidence

Literature on Project Portfolio Management (PPM) has been escalating as interest has intensified. The surge of interest has been attributed to the increased importance of technological innovation and the recognition that successful innovation depends upon effective selection and management of the New Product Development (NPD) project portfolio. PPM processes are responsible for the alignment of projects with the innovation strategy, maintaining a balance of project types, and ensuring that the project portfolio fits with resource capability so that the organization can gain the maximum value from the investment in NPD. This is the first comprehensive review of the literature on NPD PPM to be published and reveals a wide range of considerations from a variety of sources across several disciplines. The growing importance of NPD PPM is highlighted, and interest in PPM is shown to have stimulated a field of research that is beginning to offer empirical findings to help clarify the relationships between PPM methods and NPD outcomes. Findings reported in the empirical literature are compared with the common beliefs and assertions presented in other published sources. The empirical findings show support for some assertions, and challenge others, while some proposed relationships remain untested.