Innovation project portfolio management (IPPM) in the public sector context: A qualitative case study

Abstract

Academic literature discloses that innovation projects are fundamental for the enhancement of an organization’s efficiency and effectiveness. However, academic literature shows that the failure rate of innovation projects ranges up to 90%. Research has shown that the concept of innovation project portfolio management (IPPM) is fundamental in selecting successful innovation projects to enhance an organization’s efficiency and effectiveness. Presently, IPPM is predominantly deployed in private sector organizations. However, IPPM is also recognized as fundamental for public sector organizations (PSOs). The lack of theory and empirical data on IPPM in PSOs is remarkable. Therefore, a case study is conducted to explore the deployment of IPPM in a PSO context and explore how a PSO can improve its deployment of IPPM to enhance its ability to innovate and therefore enhance the PSO’s efficiency effectiveness. Data is collected by conducting semi-structured interviews and by analyzing archival data of the Dutch Police. The obtained data is analyzed and coded using the template analysis (i.e., between the inductive and deductive research approach), which helped to build a theory based on the collected data. Results indicated that IPPM is not (yet) unambiguous in the Dutch Police and that there is room for improvement concerning the current deployment of IPPM. The room for improvement is predominantly due to the confusion between ‘regular’ portfolio management and IPPM. Moreover, the need for an unambiguous innovation strategy, including an overview of innovations, the importance of IPPM, innovation types, a mechanism for funneling innovation projects, IPPM models, and IPPM flexibility, is found. Furthermore, due to the PSO context, innovation barriers are identified, such as the extensive public administration, the limited amount of human capital, and the complex responsibility structure.