Abstract
The advantageousness of corporate portfolio management (CPM) and particularly of CPM tools has been disputed among scholars for decades. A few studies that systematically analysed the relationship between applying CPM tools and firm performance are suggestive of proving a rather negative effect. Beyond just revisiting and reassessing prior research, this paper contributes to the strategic planning literature by empirically testing the impact of different CPM practices on corporate performance. Applying a multi-method approach of qualitative interviews, a global survey among senior executives of the world's largest companies supplemented with additional financial data, findings show a significant positive relationship between the frequency and rigor of CPM usage and corporate performance which partly contrasts previous research. Furthermore, considerable differences of CPM implementation and practices between top-performing companies and underperformers are identified. The study advances scholarly knowledge with regard to the relevance of strategic planning processes. Implications for future research and practitioners are highlighted.