A Study of the Effects of Project Portfolio Management on the Competitive Advantage with Dynamic Capability Theory in the Defense Industry

Abstract

????????? ????????? ???????????? ??????????????? ????????? ???????????? ??? ????????? ????????? ??? ????????? ???????????? ??????????????? ???????????? ?????? ????????? ??? ??????. ?????? ?????? ?????? ????????? ?????? ???????????? 1980?????? ?????????????????? ??????, 1990?????? ???????????? ????????? ?????? 1990?????? ??? ???????????? ????????? ???????????? ??????????????????. ??????, ???????????? ????????? ???????????? ????????? ??? ?????? ???????????? ???????????? ??????(PM)??? ??????????????????????????? ????????? ??? ??? ?????????, ??? ????????? ???????????? ???????????? ???????????? ???????????? ????????? ???????????? ???????????? ??????????????? ????????? ????????? ????????? ??????????????? ??????????????? ????????? ??? ??? ????????? ????????? ???????????? ????????? ????????? ??????. ??? ????????? ????????????????????? ???????????? ?????? ?????? Teece(1997)???PPP framework??? ???????????? ??????????????? ???????????? ??????????????? ????????? ????????????, ?????? ?????? ??? ??????????????? ???????????????. ??? ????????? ??????????????? ?????? ????????? ???????????? ??????????????? ????????? ????????????????????? ??????????????? ??? ??????????????? ????????? ??? ?????? ?????? ?????? ??????????????? ????????? ??? ????????? ???????????????. ????????? ??? ????????? ???????????? ??????????????? ????????? ????????? ??????????????? ????????? ??? ?????? ????????????????????? ???????????? ??????????????? ????????? ????????? ???????????? ????????? ??????????????? ???????????? ????????????????????? ????????? ???????????? ???????????? ??????. A business firm needs to respond and adapt to the changing business environment in order to achieve and sustain the competitive advantages in the fast changing and very competitive market of today. Business strategy is an important discipline that provides the guidelines on how to deal with the changing business environment and to develop competitive advantages. The theory development and discussion in the business strategy discipline shows a trend change from External Environment Analysis theory by Michael Porter in the 1980s, Resource Based View in the 1990s, and to the Dynamic Capability theory in the late 1990s. Another effort by business firms to cope with the changing business environment may be the development and application of project management theories such as Project Portfolio Management. The objective of this study is to investigate the effects of Project Portfolio Management in the context of the Dynamic Capability theory on creating the competitive advantages for business firms. This study used the PPP framework by Teece(1997), which is a representative analysis framework in the Dynamic Capability theory. Data was collected from the companies in the defense industry of Korea, and used for empirical tests. The results show that Project Portfolio Management provides substantial and significant helps for the business firms in creating competitive advantages. The study results may encourage the reluctant companies to adopt Project Portfolio Management with more confidence