Prospects for developing absorptive capacity through internal information provision

Abstract

Theories of absorptive capacity propose that knowledge gained from prior experience facilitates the identification, selection, and implementation of related profitable practices. Researchers have investigated how managers may develop absorptive capacity by building internal knowledge stocks, but few have focused on the distribution of this knowledge within the firm and the role managers play in administering information to organizational subunits. In this paper, we explore the degree to which managers can develop absorptive capacity by directly providing information to agents in the organization that might potentially adopt a new practice. We find that the effectiveness of managerial information provision depends on the degree to which potential adopters have information from other sources. We find that information from previous adopters and past events reduces the effect of information provision, while experience with related practices amplifies it. Our research helps clarify when absorptive capacity may provide a sustained competitive advantage.

Developing Alliance Capabilities

“…In contrast to Simonin (1997), the results of our study indicate that alliance experience can also lead to alliance performance increases directly. However, this finding is in line with the suggestion of Aldrich (1999) and the findings of Kale et al (2002) and Lenox and King (2004): alliance experience may substitute for the dissemination of knowledge via intra-firm mechanisms.…”

Functional Chains of Knowledge Management - Effects on Firms' Innovative Performance

“…In order to achieve an effective integration of external knowledge there is a need for an advanced system of knowledge processing. The conception of such a system, called absorptive organizational capacity (Cohen et al, 1990), has gained increased attention and has inspired studies on knowledge management (see for example Coombs et al, 1998;Caloghirou et al, 2004;Lenox et al 2004;Yang, 2005). Different studies following Cohen et al (1990) consider those organizational aspects of absorptive capacity.…”

Six sigma, absorptive capacity and organisational learning orientation

“…"Absorptive capacity is one of the constructs to emerge in organizational research in recent decades" (Lane et al, 2006, p.833). The current turbulent dynamic environments have made absorptive capacity one of the most important dynamic capacities in generating sustainable competitive advantage (Fosfuri and Tribó, 2008;Lenox and King, 2004;Tu et al, 2006;Zahra and George, 2002). Our study seeks to enrich this line of research by observing whether we can go beyond our knowledge that teamwork and process management of the Six Sigma methodology affect absorptive capacity to determine whether absorptive capacity can be related to organizational learning orientation.…”