Absorptive, innovative and adaptive capabilities and their impact on project and project portfolio performance

Abstract

This study explores how absorptive, innovative and adaptive capabilities within early project phases affect project and portfolio performance in pharmaceutical and biotechnology R&D organizations. A sequential qualitative – quantitative mixed method was used with 18 interviews and 80 responses to an online survey. The results show effects of absorptive, innovative and adaptive capabilities on short- and long-term project performance and portfolio performance. Absorptive and adaptive capabilities are the primary contributors to the performance outcome, whereas innovative capabilities are a minor contributor. Managerial and theoretical implications are discussed.