Application of PPM in Software Development Small Firms—A Multiple Case Study Based on Peruvian Firms

Abstract

Project portfolio management (PPM) is defined as a collection of portfolio components (projects, programs, and other activities) grouped together to facilitate their management to fully or partially meet a set of strategic objectives of the organization. These projects constitute an important part of the business and play a central role in the development, strategic vision, and maintenance of a company’s competitiveness and performance. However, from a strategic perspective, for these projects to generate value for the company, it must be guaranteed that the selected group of projects contributes to implementing the business strategy in terms of product lines, markets, technological platforms, and so on. PPM plays a vital role in enhancing a company’s competitiveness and overall performance, particularly in small firms where strategic alignment and resource optimization are crucial. This study examines the implementation of PPM practices in small software development firms, and explores managers’ perceptions of their impact on organizational performance. A mixed-method research design was employed, beginning with a quantitative exploratory study that identified small firms that actively applied PPM practices. Following this, a multiple case study was conducted to investigate how these firms implement PPM at the strategic, portfolio, and project levels. The findings support the hypothesis that small firms require a different approach than large firms and reveal the best practices that can support small software development firms in leveraging PPM to improve strategic coherence and operational effectiveness.