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

This study explores how absorptive, innovative and adaptive capabilities within early project phases affect project and portfolio performances 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.

► A distinct capability mix is needed in the pharmaceutical R&D process.
► How do capabilities relate to portfolio, short- and long-term project performance.
► Absorptive and adaptive capabilities are primary contributors to performance outcomes.
► Innovative capabilities have only a positive effect on long-term project success.
► Managers can utilize a particular capability dependent on desired performance outcome.