“…Cohen and Levintel (1990) introduce absorption capacity as a macroeconomic concept into the field of organizational theories, identifying it as the ability of an organization to recognize the value of new information from external sources, simulating and applying it for commercial purposes. One of the main reasons on why organizations tend to point out the issue of the knowledge based leadership is that this kind of leadership leads to more productivity than human capital, identifying deficiencies in organizational knowledge, more efficient and effective staffing, product delivery and more value added services, customer and employee satisfaction, preventing repetitive mistakes, reducing rework, saving time, updating and developing creativity, encouraging and innovating, organizing and expanding the knowledge flow from manufacturer to recipient and facilitating information sharing among employees (Yang et al, 2014). The organization's ability to cope with the inflation phenomenon increases information.…”