Capturing Absorptive Capacity : A Critical Review and Future Prospects

Absorptive capacity is defined as the ability of a firm to recognize the value of new external information, assimilate it, and apply it to commercial ends. It is regarded as an important factor in both corporate innovation and general competitive advantage. My approach recognizes the practice-based character of absorptive capacity. I provide a critical review of previous empirical treatments of the construct, note the need for advancing the research in this area, and suggest a qualitative approach that focuses on knowledge absorption practices. An empirical illustration shows how a practice-based approach can provide new insights into absorptive capacity