The mission of project portfolio management (PPM) is seen in evaluating, prioritising and selecting projects in line with the business strategy. Alignment of all on-going projects with the overall business strategy is generally recognised as very important for most modern organisations. Despite this recognised relevance, the available empirical evidence remains scant and in best cases it is represented by qualitative case-studies that do not provide a basis for generalisation of results. Quantitative empirical evidence is largely non-existent. The aim of this session is to develop a conceptual framework embracing a number of key variables of PPM and corresponding interrelations, derived from the extant body of literature and to test it empirically. We conducted a survey amongst experienced portfolio managers representing a wide range of organisations possessing established PPM mechanisms. Data obtained in this tailor-made survey was tested in the framework using Structural Equation Modelling. Our results provide support to most of the formulated hypotheses. We find that strategic alignment between projects and the organisation¿s business strategy has a positive effect on the PPM performance and this alignment, in its turn, is impacted by two mutually interdependent mechanisms of portfolio establishment and portfolio steering. On the basis of our findings, we formulate several managerial implications and directions for further research.@en