Abstract
With the increased interest among organizations in managing Information Technology (IT) projects as a portfolio, there has been a growing need for research on factors influencing adoption of IT Project Portfolio Management (ITPPM). ITPPM allows organizations to improve the alignment of IT projects with organizational strategy, by balancing the risks and returns from inter-related projects. To contribute to our understanding of ITPPM, this study examines the adoption of ITPPM through the theoretical lens of diffusion of innovation. Using the technology, organization, and environment (TOE) framework, we model ITPPM adoption and test our model using survey data from 302 project managers. Our results show that an organization's external pressure, ITPPM costs, organizational support, quality of data on existing IT projects, number of IT projects within the organization, and business resistance are significantly related to the adoption decision. We also find interesting results in how expected benefits of ITPPM and compatibility are perceived as equally important by both adopters and nonadopters. In light of the increasingly complex IT project management environment faced by organizations, our paper helps managers to understand and focus on key enablers of ITPPM adoption and better manage ITPPM inhibitors.
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