A Project Portfolio Management Approach to Tackling the Exploration/Exploitation Trade-off

Titelangaben

Linhart, Alexander ; Röglinger, Maximilian ; Stelzl, Katharina:
A Project Portfolio Management Approach to Tackling the Exploration/Exploitation Trade-off.
In: Business & Information Systems Engineering. Bd. 62 (2020) Heft 2 . - S. 103-119.
ISSN 1867-0202
DOI: https://doi.org/10.1007/s12599-018-0564-y

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Abstract

Organizational ambidexterity is a necessary capability for surviving in dynamic business environments by simultaneously pursuing exploration and exploitation. During the last decades, the knowledge on organizational ambidexterity has continuously grown, comprising insights into performance outcomes, antecedents, and moderators of organizational ambidexterity. However, there is still a lack of guidance on how to put organizational ambidexterity into practice and prioritize investments in exploration and exploitation. To address this gap in prescriptive knowledge, we propose a decision model that assists organizations in determining which explorative and exploitative projects they should implement to maximize their firm value. We adopt the design science research paradigm and build on justificatory knowledge from agile project portfolio management, organizational ambidexterity, and value-based management. To validate the decision model, we discuss its characteristics against theory-backed design objectives and with eightindustry experts. We further instantiate the decision model as a software prototype and provide a demonstration based on real-world data to illustrate how the decision model can be applied.