“…It has also been acknowledged as a critical component for organisations to sustain, grow and compete in their market. Many researchers have used the concept of absorptive capacity in their analysis at different levels: individual (Bower & Hilgard, 1981;Cohen & Levinthal, 1990;Deng, Doll, & Cao, 2008;Lenox & King, 2004), organisation (Bosch, Volberda, & Boer, 1999;Cohen & Levinthal, 1990;Lin, Tan, & Chang, 2002;Smallbone, North, & Leigh, 1993), industry (Abecassis-Moedas & Mahmoud-Jouini, 2008;Liao, Wu, Hu, & Tsuei, 2009;Rawski, 1975;Stock, Greis, & Fisher, 2001) and country (Hou & Gee, 1993). However, most of the studies focus on very large organisations with sophisticated structures and strong R&D orientation.Very few studies address the theory of absorptive capacity in the context of SME organisation.…”