Abstract

Corporate portfolio management (CPM) approaches emerged over 40 years ago in response to the rise of large corporations with diversified portfolios of partly unrelated business units. Their initial purpose and main application area was to support corporate management in defining the boundaries of a firm, allocating resources and assigning specific roles and targets for each business unit. Today, CPM is still regarded as highly relevant, but little is known about the application of CPM instruments in corporate practise. Based on a survey among 196 executives of the largest companies worldwide, we identified three distinct CPM user-types: corporate developers, business unit steerers and passive portfolio managers. These CPM application patterns are traced back to a set of distinct company characteristics. Moreover, it is demonstrated that the CPM user type has a significant influence on the characteristics of the implemented CPM processes and on the integration of CPM with other corporate processes.

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