“…Diffusion of innovation theory by Rogers (Rogers, 2003) is talking about the communication process, as diffusion is concerned with process channels through which innovation communicated at the workplace through team members; on the other side, innovation is concerned with the novel, new and unique idea by an individual (Carreiro & Oliveira, 2019;Zhou et al, 2019). Diffusion of innovation theory contributed in several diverse areas, i.e., marketing, innovation, and public health (Raven & Walrave, 2020;Rogers, 2004), to facilitate leadership to realize the appropriate procedures for crafted novel ideas smoothly. Based on this notion, we argue that absorptive capacity in the presence of positive leadership enhances the innovation level of firms, as potential and realized absorptive capacity enables firms to generate new products and services through interpretation of new and current knowledge.…”