A dynamic capabilities perspective of IS project portfolio management

•We conceptualise IS PPM as a dynamic capability composed of multiple component dynamic capabilities.•This dynamic conceptualisation allows an exploration the adaption of IS PPM to turbulent recessionary conditions.•We identify four component dynamic capabilities of IS PPM.•These are found to be developed in different combinations and sequences.•The constituent dynamic capabilities are shown to become more detailed and analytical in recessionary market conditions.

Organizations use information systems project portfolio management (IS PMM) to reconfigure their IS resources and capabilities to match changing market and economic conditions. IS PPM can therefore be characterised as a dynamic capability. We investigate how firms developed and adapted IS PPM to match the turbulent recessionary conditions witnessed after 2008–2009. This study contributes to an understanding of IS PPM by identifying the constituent dynamic capabilities and providing empirical examples of adaptation. To our knowledge, the study is the first to apply the notion of second order dynamic capabilities to the IS domain and also makes an important contribution to the more general concept of dynamic capabilities by providing empirical evidence and theoretical justification of the increased detailed, centrally controlled and analytical nature of IS PPM dynamic capabilities in recessionary conditions.