Innovation Portfolio Under Constraints: Strategic Bucket Design In A Process Industry

Abstract

In capital-intensive process industries, where innovation is strongly linked to operational continuity, regulatory requirements, and long-term asset investments, managing innovation projects portfolios can be especially difficult. The design and adaptation of strategic buckets to specific industrial contexts have received little attention in prior research, despite their widespread recognition as a helpful tool for project portfolio management. This study fills this gap by investigating how strategic buckets are created to manage innovation projects portfolio in the paper industry. This study employs a qualitative case study methodology, utilizing semistructured interviews and document analysis. It draws on innovation portfolio management theory and an established conceptual framework for strategic bucket design. Key dimensions and related factors are identified within the proposed framework. Furthermore, the study demonstrates the application of strategic buckets in the case company. The findings contribute to a more context-sensitive understanding of strategic bucket design and provide practical insights for managing innovation project portfolios in capital-intensive process industries.