Managing of portfolios: The Australian studies
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Organizations often set ambitious goals for future revenue generated from new products or services. To achieve business strategy and goals, organizations are led to develop the “right” new products or services. It is a critical process and is often cited as the key to a competitive advantage. Therefore, many organizations adopt portfolio management to manage these challenges. Along with the increasing diffusion of portfolio management, a new managerial role has evolved: the portfolio manager. This new role is pivotal in planning, selecting and controlling projects and programs landscapes more effectively and efficiently. Using transaction costs economics theory and applying with a sequential mixed-method, this study investigates the roles, responsibilities, and practices of portfolio managers. This article presents the second stage, quantitative study and was developed based on 100 responses to a web-based questionnaire to portfolio managers from manufacturing and services industries in Australia. This quantitative study also investigated the impact of environmental uncertainty and asset specificity on portfolio management roles, responsibilities and practices of middle managers. Correlation analysis was applied to test for the relationship between portfolio context and practices, roles and responsibility of portfolio managers. Results showed that both organizations in manufacturing and service industries apply portfolio management process, tools to address the requirements of the complexity of the organization’s environment and the asset specificity. Theoretical and managerial implications are also discussed.
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