From Digital Culture to Project Portfolio Governance: Role of Business Innovation Model and Technological Absorptive Capability

Abstract

This study examines the impact of digital culture on project portfolio management within digital organizations, considering business innovation models as a mediating factor and technological absorptive capability as a moderating factor. Employing a cross-sectional design and a quantitative approach, the study surveyed 200 managers and experts from digital organizations. Data were analyzed using SmartPLS-4 software, a tool for structural equation modeling based on the Partial Least Squares (PLS-SEM) method. The study concludes that digital culture plays a pivotal role in developing business innovation models within digital organizations. This study indicates that the greater an organization's skills and capabilities in technology learning and knowledge utilization, the more effective its project portfolio governance. The findings suggest that while digital culture facilitates the development of innovative practices, it is insufficient on its own to enhance managerial capability. Strengthening project portfolio governance in a digital environment requires advanced technical capabilities and effective mechanisms for knowledge utilization. This study offers theoretical and practical contributions that foster a better understanding of how to enhance governance structures in a rapidly changing technological landscape and enable more informed decision-making at the portfolio level.