From Dynamic Capabilities to Success: Unpacking the Dual Mediation of Agility and Leadership in Driving Project Portfolio Performance

Abstract

Agility is crucial for a project portfolio to succeed in a dynamic environment, according to recent literature. Three components make up dynamic capabilities: identifying market and technological opportunities, taking advantage of those opportunities by giving them priority and fully utilizing them, and regularly rearranging resources and organizational structures. Even though prior research has emphasized the significance of dynamic skills for project portfolio agility (PPA), it has hardly ever conducted an empirical analysis of these capabilities. This study utilized a multi-informant approach to collect cross-industry sample data from 400 project portfolios, examining the relationship between project portfolio agility and success, and dynamic capabilities. The results demonstrate that dynamic capabilities and portfolio agility have a positive association, with portfolio agility acting as a mediator between dynamic capabilities and the success of portfolio. The findings emphasized how dynamic skills are crucial to portfolio agility. Also, it adds to the knowledge base regarding portfolio agility and project portfolio management.