Knowledge Absorptive Capacity - A Theoretical Review

Abstract

The emergence of the knowledge-based economy has accelerated technological progress, contributing equally to the rapid obsolescence of existing technology, which requires organizations to renew their knowledge bases constantly. In this context, this study aimed to explore the concept of the knowledge absorptive capacity, its relationship with organizational learning and the role of its dimensions (knowledge acquisition, knowledge assimilation, knowledge transformation, and knowledge exploitation), and how high levels of knowledge absorptive capacity can contribute to influence other managerial concepts such as organizational ambidexterity, organizational learning, innovation, and organizational performance to achieve sustainable competitive advantage. This study adopted the theoretical review that evolved in the strategic management literature regarding the concept of knowledge absorptive capacity. The study drew a set of conclusions, most notably that the concept of knowledge absorptive capacity evolved as the concepts of knowledge and organizational learning evolved and how knowledge management was based on a knowledge-based view, which in turn evolved based on a resource-based view, and the developing of the concept of dynamic capabilities, and how to move from closed to open innovation. The study led to several recommendations, most notably further quantitative research to examine the impact of perceived relationships between the knowledge absorptive capacity and other managerial concepts in different commercial and industrial sectors