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Absorptive Capacity

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Absorptive capacity is the ability of an organization to recognize, assimilate, and apply external knowledge to enhance its innovation and competitive advantage. It encompasses processes of acquiring, transforming, and utilizing knowledge effectively to improve organizational learning and performance.
lightbulbAbout this topic
Absorptive capacity is the ability of an organization to recognize, assimilate, and apply external knowledge to enhance its innovation and competitive advantage. It encompasses processes of acquiring, transforming, and utilizing knowledge effectively to improve organizational learning and performance.

Key research themes

1. How do individual and social integration mechanisms influence organizational absorptive capacity in SMEs?

This research area focuses on unpacking the micro-foundations of absorptive capacity (ACAP) within small and medium-sized enterprises (SMEs), emphasizing the role of individual absorptive capacity and social integration mechanisms in shaping organizational-level knowledge absorption and innovation capabilities. Understanding these foundational processes matters because SMEs face unique challenges in acquiring and leveraging external knowledge to sustain competitive advantages and innovate effectively. This theme is critical as it integrates cognitive learning perspectives with social dynamics to explain how organizational routines for knowledge absorption are developed and executed.

Key finding: Using a longitudinal survey of 427 responses from metal mechanic SMEs in Brazil and structural equation modeling (SEM), the study empirically demonstrates that individual absorptive capacity (recognition, assimilation,... Read more
Key finding: Through confirmatory factor analysis and multiple linear regression involving 111 companies incubated in Rio Grande do Norte, this study identifies that external knowledge use strongly influences absorptive capacity, whereas... Read more
Key finding: By examining research and development (R&D) projects at Brazil's public agricultural research company Embrapa, the study identifies configurations of acquisition, transformation, and application of knowledge processes that... Read more
Key finding: Assessment of two innovative companies from traditional sectors reveals that organizational antecedents such as prior knowledge of individual members and investments in R&D significantly foster the development of both... Read more
Key finding: Employing a case study of four companies with qualitative analysis, this research presents a dual process and structure approach explaining how absorptive capacity manifests through iterative learning processes (knowledge... Read more

2. What is the impact of absorptive capacity dimensions on innovation performance across different industries and contexts?

This theme investigates how the distinct dimensions of absorptive capacity (acquisition, assimilation, transformation, and exploitation) correlate with various facets of innovation—product, process, administrative, technological—and how these relationships manifest in different sectors including manufacturing, services, tourism, and green innovation. It is important because innovation is a primary driver of competitive advantage and economic growth, and absorptive capacity is a key dynamic capability enabling firms to leverage external knowledge for innovation outputs. Exploring this theme provides concrete evidence on the mechanisms through which firms convert knowledge into innovation, accounting for contextual moderators and organizational variables.

Key finding: Based on survey data from 249 SMEs in the Mexican manufacturing sector and using PLS-SEM, this study confirms that potential absorptive capacity (PACAP) significantly influences realized absorptive capacity (RACAP), which in... Read more
Key finding: Analyzing 37 empirical quantitative studies, the systematic review identifies that absorptive capacity generally has a direct positive influence on innovation performance, but this effect is moderated by factors such as... Read more
Key finding: Using survey data from 79 Scottish construction firms and multiple regression analyses, this study finds a differentiated effect of absorptive capacity dimensions on green innovation types: external knowledge acquisition... Read more
Key finding: This study of 134 Colombian tourism sector firms applies both PLS-SEM and fuzzy-set qualitative comparative analysis (fsQCA) to show that among the four ACAP dimensions, knowledge transformation and exploitation significantly... Read more
Key finding: Employing PLS-SEM multigroup analysis on 373 Colombian companies, this research reveals that both potential (acquisition, assimilation) and realized (transformation, exploitation) absorptive capacity positively influence... Read more

3. How does absorptive capacity mediate the relationship between digital capacity, IT governance, and innovation outcomes in organizational contexts?

This theme explores the mediating role of absorptive capacity as a dynamic capability that enables organizations to effectively leverage digital technologies and IT governance mechanisms toward enhanced innovation and digital transformation performance. It matters because as enterprises increasingly adopt digital technologies (Industry 4.0, IoT, AI), understanding the internal capabilities that transform digital investment into innovation and competitive advantage becomes critical. This line of investigation informs both theory and practice regarding how organizations must develop absorptive capacity to benefit fully from digitization efforts.

Key finding: Analyzing survey data from 1014 Greek manufacturing firms using structural equation modeling, this study empirically finds that digital capacity positively influences innovation performance, but this effect is significantly... Read more
Key finding: Utilizing PLS-SEM with data from 110 Moroccan higher education staff, this study demonstrates that IT governance mechanisms positively impact absorptive capacity, which in turn mediates their effect on successful digital... Read more

All papers in Absorptive Capacity

Digitalization is essential for supply chain (SC) systems to thrive in the extremely dynamic and competitive business environment of the present day. The purpose of this study is to examine the role and the importance of absorptive... more
The Philippines Initiative Against Corruption (PIAC) is a citizen-driven framework to promote transparency and accountability in public infrastructure projects. It introduces a presumption of accountability for politicians, engineers and... more
abstractA firm's ability to acquire and exploit external knowledge is often critical to achieving and sustaining a competitive advantage. In this study, we adopt a multi‐dimensional view of absorptive capacity and focus specifically... more
The purpose of this paper is to investigate the relationships between absorptive capacity, innovation performance and Information Technology in Romanian small and medium-sized enterprises (SMEs). This is the first study conducted in... more
There is a myth that a big company normally has a difficulty to adapt in the dynamically change environment to remain competitive over time. The objective of this study is to investigate the conflicting pressure of absorptive capacity and... more
The innovation performance of a firm is addressed using the System Dynamics method. The problem that motivated this study is the lack of a comprehensive theory that explains both the poor innovation performance of the Colombian industry... more
Drawing on the real options approach, we analyse which factors motivate firms to choose technological joint venture formation as their technology strategy. Scholars researching joint ventures through the real options lens have usually... more
Technological strategic alliance (TSA) formation represents an important competitive mechanism for firms, and it can be considered as a real option on future technological opportunities. Our objective is to analyse, under a real options... more
Today's information and knowledge society requires new leaders who can confront a reality based on knowledge and foster innovation to achieve improvements in organizational performance. However, organizations sometimes fail to achieve... more
The main proposal of the study involves the use of the Economic Vulnerability In-dex (EVI) which was developed by the United Nations for understanding the economic vulnerability of low-income countries.
Making development financing in LDCs more conducive to development should be a priority for the next Programme of Action of the Istanbul Conference. It needs to go beyond the old and emblematic target of ODA to LDCs, which is too far to... more
Innovation has become a pivotal driver of competitive advantage in the automobile industry. This review paper investigates the role of various forms of innovation-including technological, process-oriented, business model, and... more
Purpose: Test the influence of cultural orientation to innovation on the number of innovations measured in Brazilian companies. Originality/value: The study uses an approach that has not yet been explored in the area, the multilevel... more
This study offers insight through Structural Equation Modeling (SEM) into the joint impact of corporate absorptive capacity and corporate new business venturing on the performance of manufacturing firms in Nigeria as moderated by the... more
Previous studies informed by the concept of absorptive capacity predominantly laid emphasis upon static aspects and for the most part utilized quantitative methods. In contrast, the present comparative case study takes the processual... more
In developing economies, little is invested in research and development. Therefore, it is proposed that lower-tech firms develop their absorptive capacity and be linked through market and institutional networks to achieve technological... more
In developing economies, little is invested in research and development. Therefore, it is proposed that lower-tech firms develop their absorptive capacity and be linked through market and institutional networks to achieve technological... more
Innovation capacity is on the focus of policy makers in emerging economies. Although some studies show the antecedents of innovation capacity for developed economies and high technological industries, scant research outcomes exist for... more
The major challenge of European Union's agricultural industry is to ensure sustainable supply of quality food that meets the demands of a rapidly growing population, changing dietary patterns, increased competition for land use, and... more
The major challenge of European Union’s agricultural industry is to ensure sustainable supply of quality food that meets the demands of a rapidly growing population, changing dietary patterns, increased competition for land use, and... more
Determination of the proximate, nutritionally valuable minerals and anti-nutrient compositions in larvae of Cirina forda (W) showed that they contained high levels of protein, (55.50%±1.20%) with ash, moisture, fat, and carbohydrate... more
Scholars of industrial clusters and networks have recently called for more research on network's chance over time. This paper contributes a further step along that path. It uses micro-level data based on the execution of a pair of... more
Most analyses of the relationship between spatial clustering and the technological learning of firms have emphasised the influence of the former on the latter, and have focused on intra-cluster learning as the driver of innovative... more
Large scale, quantitative information about the variability of target soil properties is required for forest management. This project is attempting to determine whether or not the New Zealand Soil Classification system (NZSC), when used... more
The later part of twentieth century saw developed nations emerge into knowledge economies, hinging on technological change which serves as the main driver for growth of economies in the long run. Entrepreneurs have attained attention as... more
Rival firms produce products with a multitude of characteristics and consumers choose to purchase those products that most closely match their ideal set of characteristics. Orthodox production theory ignores the view that products are... more
This paper presents an empirical study to explore how firms invest in their IT infrastructure to support strategic flexibility. It investigates how IT infrastructure capabilities relate to strategic flexibility, how firms build... more
Abstract: In Higher Education and Research Organisations (HEROs), one of the most important activities in the R&D process is the effective management of knowledge transference. A correct analysis and diagnosis of that process through... more
The growth of innovative small and medium enterprises (SMEs) and the establishment of networks of SMEs, such as clusters, are seen as contributing to the creation of jobs and increasing competitiveness. Interaction with inward foreign... more
We determined gut mucosal barrier injury (MBI) among 129 recipients of an allogeneic or autologous haematopoietic stem cell transplant (HSCT) who had been given different myeloablative regimens by measuring integrity using the... more
We determined gut mucosal barrier injury (MBI) among 129 recipients of an allogeneic or autologous haematopoietic stem cell transplant (HSCT) who had been given different myeloablative regimens by measuring integrity using the... more
The absorption-desorption characteristics towards hydrogen of the composites 95wt.% Mg-5wt.% activated carbons derived from bean pods and apricot stones, obtained by ball milling in argon atmosphere were investigated. Hydriding of the... more
The objective of this proposal is to present a theoretical reflection on the concept of projects absorptive (absorption) capacity and the role of managers' and employees' commitment in the implementation of work routines. The general... more
The paper studies the effects of foreign direct investment (FDI) on economic growth when sufficient provisions of infrastructure is a pre-requisite. In the overlapping generations structure setting, we show that technology spillovers via... more
Background: Implementation of digital monitoring technology systems is considered beneficial for increasing the safety and quality of care for residents in nursing homes and simultaneously improving care providers' workflow. Co-creation... more
Introduction Immaturity of motility, intestinal epithelial barrier function and absorptive capacity may play a role in the pathophysiology of intestinal diseases in preterms. We determined the gastric electrical activity and emptying, and... more
This paper investigates the determinants of longevity at a macroeconomic level, emphasizing the important role played by education. To analyze the determinants of longevity, we build a model where households intentionally invest in health... more
We argue that education exerts positive external effects on health, beyond the standard internal effects documented in the literature. We put forward a model that clarifies the links between education and longevity in the presence of such... more
This paper investigates the nature of the aggregate production function of health services. We build a model to analyze the role of public policy in determining social health outcomes, taking into account households choices concerning... more
Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and... more
A lack of collaborative innovation and absorptive capacity in firms causes projects to fail. Managers/employees in small and medium enterprises (SMEs) are not sufficiently aware of the practices of intellectual capital and nor do they... more
The key to the success of the company in this dynamic era is innovation capability and absorptive capacity. There is a paucity of research that links these two things with supply chain integration, especially for SMEs. This study aims to... more
In an era where data-driven decision-making is becoming central to organizational success, understanding how emerging technologies influence business operations is critical. This study analyzed the application and impact of Business... more
The present study describes an Integrated Methodology developed combining Social Network and Content Analysis approaches, to investigate the organizational mechanisms responsible for the creation of Social Capital within Communities. The... more
The innovation performance of a firm is addressed using the System Dynamics method. The problem that motivated this study is the lack of a comprehensive theory that explains both the poor innovation performance of the Colombian industry... more
This paper explores export spillovers that arise from foreign direct investment generated linkages between domestic and foreign firms in Turkish manufacturing industry. By making use of a recent firm level dataset, we investigate how... more
The fifteen years following the introduction of the seminal construct of absorptive capacity (AC) by Levinthal (1989, 1990) have seen the proliferation of a vast literature citing the AC construct in over 1500 published papers, chapters... more
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