Developing Absorptive Capacity in Mature Organizations

Abstract

A considerable amount of research into how organizations absorb new knowledge was prompted by the work of Cohen and Levinthal. In a recent literature review Zahra and George identify two distinct elements of absorptive capacity (potential and realized). This article contributes to the study of managerial agency in the absorption of new knowledge and skills. Zahra and George’s model is extended to incorporate key roles associated with knowledge transfer, including gatekeepers, boundary spanners and change agents. Empirical data are drawn from a longitudinal study of a mature manufacturing firm based in North Wales. Change was initiated by the owner in response to the loss of the company’s major customer—the Ministry of Defence. The main change agent was a recently recruited middle manager who used his mass production experience to improve managerial communications and introduce more efficient working practices to the shopfloor.

Knowledge Acquisition and Assimilation in Tourism-Innovation Processes

“…Cohen and Levinthal defined ACAP as the firm's ability to recognize the value of new information, assimilate it and apply it to commercial purposes (Cohen & Levinthal, 1990;Gebauer et al, 2012). Zahra and George (2002) argued that a firm´s ACAP is its dynamic ability to acquire and apply external knowledge that contributes to an improved competitive advantage (Jones, 2006). ACAP as a dynamic capability means that it can be attributed to a collective such as the firm or to individual employees or innovation managers.…”

The Development of Absorptive Capacity-Based Innovation in a Construction SME

“…ACAP can be described as a dynamic capability that is based on 'the creation and utilisation of knowledge that contributes to improved competitive (Jones, 2006, p 357). Jones (2001Jones ( , 2006 describes absorptive capacity as the ability to learn and solve problems where the status quo and path dependencies are challenged, as is the situation in the construction market. Zahra and George (2002), in building upon Cohen and Levinthal's (1990) research, show the importance of ACAP in terms of achieving strategic and competitive advantage for the firm, in that ACAP '…enhances a firm's ability to gain and sustain a competitive advantage' (Zahra and George, 2002, p 188).…”

“…They must have the dynamic capability to learn quickly, integrate new knowledge and transform and implement this new knowledge in their business routines and processes to increase effectiveness and competitiveness (Jones, 2006;Daghfous, 2004).…”

“…It also enables the firm to adapt to the changing market conditions. However, Jones (2006), along with Zahra and George (2002), states that the study of ACAP in organizations is limited by a lack of definition at an operational level within these organizations. Easterby-Smith et al (2008) conclude that there is a need for further studies in different types of organizations to develop further understanding of the construct and adopt a process approach to ACAP.…”

Design Absorption and Learning Processes: a study on designers’ perceptions about companies.

“…Knowledge management is intertwined in learning processes in organizations and tied with three processes: acquisition and development of knowledge, dissemination and construction of memories, collective processes for the elaboration of the necessary competences to the organization (Fleury & Fleury, 2001). Therefore, learning organizations are the ones that take hold of skills to create, acquire and transfer knowledge, that are able to modify their behavior in order to reflect new knowledge in ideas (Garvin, 1993) 2.2Absorption Capacities in Design & Levinthal, 1990;Jones, 2006;Zahra & George, 2002). The first is the Potential Absorptive Capacity (PACAP), which is the ability to acquire and assimilate knowledge.…”