This paper examines project-based management as an organizational innovation. Institutional theory and innovation diffusion literature suggest that the drivers for adopting an organizational innovation may differ across organizations, and that the drivers may be linked with the timing of the innovation. A survey questionnaire was used for data collection, and the sample consisted of 111 companies representing a variety of industries. The results of this study identified external pressure and internal complexity as drivers for introducing project-based management. The degree of process change, depth of project-based management adoption, and local success of project-based management introduction as changes caused by adopting project-based management are examined. The study also reveals benefits from introducing project-based management in the form of improvement in project culture, and efficiency improvement.