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- Title
Absorptive Capacity and Institutional Theory: A Review and Appraisal of Future Research Agenda.
- Authors
AHMAD, Bashir; ERCEK, Mehmet
- Abstract
As business becomes more fast-paced in the 21st century, organizational success relies ever increasingly on knowledge resources. Therefore, firms constantly engage in activities to search and integrate external knowledge resources with their internal ones for upgrading their existing knowledge bases. These activities and processes that relate to the search, assimilation, integration and transformation of external and internal knowledge resources are labeled as 'absorptive capacity' (AC) of a firm. The aim of this study is to review the AC literature in order to enhance understanding about the nature of this important organizational construct as well as to appraise possible avenues for AC and institutional theory (IT) literature to connect with each other. To achieve this objective, the study examines the origin, major contribution, and antecedents and outcomes of AC. The review reveals AC as a multidimensional construct, which has been repeatedly re-evaluated, modified, and reconceptualized by several authors since its inception. Until recently, the construct has been studied at different analytical levels across different research settings. We pinpoint prior related knowledge as the most prominent antecedent of AC alongside a wide variety of other factors and argue that different antecedents may have varying effects on different dimensions of the AC. In addition to this, AC influences various organizational outcomes such as innovation, performance, and learning. Surprisingly, there is a very limited research that connects the institutional perspective with the AC, which holds immense potential for future research efforts.
- Subjects
BUSINESS success; INDUSTRIAL management; BREAK-even analysis; INSTITUTIONAL theory (Sociology); ABSORPTIVE capacity (Economics)
- Publication
Journal of Economic & Management Perspectives, 2018, Vol 12, Issue 2, p5
- ISSN
2523-5338
- Publication type
Article