Project portfolio management (PPM) is central for project-based firms to achieve structure and prioritization among multiple projects. Competitive pressures, emergence of new technology and constantly changing customer demand imply a dynamic nature of PPM that calls for adjustments to different situations. This paper investigates PPM challenges that a company in the lighting industry face during a technology transformation from fluorescent technology to LED technology. The technology transformation resembles a modular innovation and the question asked is: How does technology transformation influence the project selection process? The findings rest upon an in-depth case study where data was collected via narrative interviews with representatives having detailed insights into the company’s PPM activities and decisions. The key findings from the study are: (1) When a company faces a technology, which involves most products in the portfolio to be converted to a new technology, the project selection focus shifts from “what products should be developed” to “in what order should the products be developed”. (2) The technology transformation might lead to that the planned order for carrying out projects can be frequently changed due to reprioritizations during project execution phase. Based on the key findings it can be concluded that PPM selection seems more dynamic than postulated in the literature.

This paper contributes with increased insights into the dynamic nature of project selection, specifically related to a technology transformation situations characterized by modular innovation. Further studies are needed regarding effects of other kinds of technology transformations on project selection activities and decisions as well as other factors contributing to the dynamics of PPM.