Journal
JOURNAL OF MANAGEMENT
Volume 31, Issue 4, Pages 549-572Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/0149206304272293
Keywords
absorptive capacity; knowledge; learning; software industry; innovation
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The ability of the firm to effectively use external knowledge (its absorptive capacity) is important to firm competitiveness and innovativeness. However the wide array of approaches to studying absorptive capacity has obscured our understanding of what drives the effective use of external knowledge. The authors show that absorptive capacity is composed of mutliple dimensions: (a) the firm's relationship to its external environment; (b) the structure, routines, and knowledge base of the main value creation group(s); and (c) individuals' absorptive abilities. Their data illustrate that each of these dimensions contributes to increased knowledge or knowledge creation activities.
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