Operationalization of Absorptive Capacity
Journal Title: International Journal of Contemporary Management - Year 2014, Vol 13, Issue 3
Abstract
Background. Absorptive capacity is defined as the ability of a firm to recognize the value of new external information, assimilate it, and apply it to commercial ends. It is regarded as an important factor in both corporate innovation and general competitive advantage. Absorptive capacity explains how firms can create and capture value from in-sourcing external knowledge. Research aims. The systematic literature review has indicated some discrepancies in the field of absorptive capacity operationalization of its dimensions. Methods. The article summarizes both theoretical and empirical literature on absorptive capacity. Moreover, based on that literature some proposals for the operationalization of absorptive capacity were formulated.Key findings. One of the interesting and quite new research areas within these processes is the absorptive capacity, and, to be more precise, the dimension of absorptive capacity. Generally speaking, absorptive capacity literature focused on the capacity to make use of existing knowledge, placing emphasis on the capacity to assimilate and transform it and the necessity for a firm to accept external knowledge as a legitimate resource for innovation. It is one of the fundamental learning abilities that organizations can develop to detect knowledge and information outside the organization that may be useful to them and then to internalize and adapt that information to their specific needs and exploit it for market goals. However, despite its positive impact on growth, quality and content of knowledge, the absorptive capacity has not been investigated in a holistic way so far. The article summarizes both theoretical and empirical literature on absorptive capacity. Moreover, based on that literature some proposals for the operationalization of absorptive capacity were formulated.
Authors and Affiliations
Regina Lenart
Keywords
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