Emerging strategy recognition in agile portfolios

Abstract

Agile practices become increasingly popular for projects and project portfolios offering firms a higher flexibility to adapt to dynamic environments. This study investigates the antecedents and consequences of agile practices' relevance for strategy formulation in project portfolio management processes. Building on complex adaptive systems theory, we hypothesize a positive relationship between agile capabilities and emerging strategy initiatives and eventually portfolio success. Agile capabilities refer to both the project portfolio organization's intensity of and competence in applying agile practices. Using a sample of 135 portfolios and multiple informants for each portfolio, the results support entrepreneurial orientation and voice behavior as antecedents for agile capabilities. Furthermore, the findings support an agile portfolio's positive relationship with emergence recognition and overall portfolio success. The findings contribute to the literature by identifying two significant antecedents of agile capabilities as well as empirically demonstrating the positive relationship between agile portfolios and emerging strategy recognition. For practitioners, the study encourages the application of agile practices by stressing the general positive influence of agile capabilities and underlines entrepreneurial orientation and voice behavior as important methods of empowerment for agile portfolio processes.