The Impact of Absorptive Capacity on Strategic Supremacy at Jordanian Insurance Companies

Abstract

This study aimed to identify the impact of absorptive capacity’s dimensions (knowledge acquisition, knowledge assimilation, knowledge transformation, and knowledge exploitation) on strategic supremacy’s dimensions (sphere of influence, competitive compression, competitive configuration) at Jordanian Insurance Companies (JIC). The study adopted a quantitative (descriptive-analytical) approach in terms of mechanism and procedures, utilizing a questionnaire as a data collection tool from the study population consisting of senior and middle management in JIC, which consisted of (436) managers, to achieve the study’s objectives, including disclosing the relative importance of study variables (absorptive capacity, strategic supremacy) in JIC. The study’s results demonstrated a statistically significant impact at a significance level (α ≤ 0.05) for absorptive capacity with its dimensions (knowledge acquisition, knowledge assimilation, knowledge transformation, and knowledge exploitation) on strategic supremacy in the JIC. The study made several recommendations, among the most important being the need for JIC to develop methods to identify knowledge generated outside the organization by organizing regular meetings with stakeholders or using various social activities to acquire new knowledge.