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T h e o r i e s U s e d i n I S R e s e a r c h
A b s o r p t i v e C a p a c i t y
| Theory Name | Theory of Absorptive Capacity |
| Acronym | N/A |
| Alternate name(s) | N/A |
| Main dependent construct(s)/factor(s) | Quantity of knowledge absorption, quantity of knowledge transfer |
| Main independent construct(s)/factor(s) | N/A |
| Concise description of theory | Absorptive capacity is a limit to the rate or
quantity of scientific or technological information that a firm can absorb.
Conceptually, it is similar to information processing theory, but at the
firm level rather than the individual level. Absorptive capacity was introduced by
Cohen and Levinthal in 1990.
Zahra and George (2002) extended the theory by specifying four distinct dimensions to absorptive capacity: acquisition, assimilation, transformation and exploitation. When absorption limits exist, they provide one explanation for firms to develop internal R&D capacities. R&D departments can not only conduct development along lines they are already familiar with, but they have formal training and external professional connections that make it possible for them to evaluate and incorporate externally generated technical knowledge into the firm. In other words, a partial explanation for R&D investments by firms is to work around the absorptive capacity constraint. Modified from: http://economics.about.com/cs/economicsglossary/g/absorptive_cap.htm |
| Diagram/schematic of theory | N/A |
| Originating author(s) | Cohen and Levinthal (1990) |
| Seminal articles |
Cohen W., and D. Levinthal. 1990. "Absorptive capacity: a new perspective on learning and innovation." Administrative Science Quarterly 35(1) pp 128-152. Henderson, R., and Cockburn, I. “Measuring Competence? Exploring Firm Effects in Pharmaceutical Research,” Strategic Management Journal (15:8), Winter Special Issue,1994, pp. 63-84. Nonaka, I. “A Dynamic Theory of Organizational Knowledge Creation,” Organization Science (5:1), 1994, pp. 14-37. Szulanski, G. “Exploring Internal Stickiness: Impediments to the Transfer of Best Practices Within the Firm,” Strategic Management Journal (17:10), 1996, pp. 27-43. Bosch, F. A., Volberda, H. W., and Boer, M. D. 1999. Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities. Organization Science 10, 5 (May. 1999), 551-568. Zahra, S. A., and George, G. “Absorptive Capacity: A Review, Reconceptualization, and Extension,” Academy of Management Review (27:2), 2002, pp. 185-203. Mowery, D. C., Oxley, J.E. et Silverman, B. S. (1996), “Strategic alliances and interfirm knowledge transfer”, Strategic Management Journal, Winter Special Issue, 17, pp. 77-92. |
| Originating area | Strategic management, Organizational behavior |
| Level of analysis | Firm |
| Links to WWW sites describing theory |
http://en.wikipedia.org/wiki/Absorptive_capacity, Wikipedia entry on
absorptive capacity http://economics.about.com/cs/economicsglossary/g/absorptive_cap.htm, About.com entry on absorptive capacity |
| Links from this theory to other theories |
Information processing theory Dynamic capabilities, Transactive memory, Information processing theory |
| IS articles that use the theory |
Aladwani, A. M. “An Integrated Performance Model of Information Systems Projects,” Journal of Management Information Systems (19:1), 2002, pp. 185-210. Faraj, S., and Sproull L. “Coordinating Expertise in Software Development Teams,” Management Science (46:12), 2000, pp. 1554-1568. Nelson, K., and Cooprider, J. “The Contribution of Shared Knowledge to IS Group Performance,” MIS Quarterly (20:4), December 1996, pp. 409- 429. Arvind Malhotra, Sanjay Gosain, and Omar A. El Sawy, 2005, “Absorptive Capacity Configurations in Supply Chains: Gearing for Partner-Enabled Market Knowledge Creation”, MIS Quarterly, Volume 29, No. 1, pp. 145-187. Boynton, A. C., Zmud, R. W., and Jacobs, G. C. 1994. The influence of IT management practice on IT use in large organizations. MIS Q. 18, 3 (Sep. 1994), 299-318. Schilling, M. A., Vidal, P., Ployhart, R. E., and Marangoni, A. 2003. Learning by Doing Something Else: Variation, Relatedness, and the Learning Curve. Manage. Sci. 49, 1 (Jan. 2003), 39-56. Griffith, Sawyer, and Neale, “Virtualness and Knowledge in Teams: Managing the Love Triangle of Organizations, Individuals, and Information Technology MIS Quarterly, 27, 2, 2003, pp. 265-287 Ko, Kirsch, and King, “Antecedents Of Knowledge Transfer From Consultants To Clients In Enterprise System Implementations”, MIS Quarterly, 29, 1, 2005, pp. 59-85. V. Sambamurthy , Robert W. Zmud, Arrangements for information technology governance: a theory of multiple contingencies, MIS Quarterly, v.23 n.2, p.261-290, June 1999 Pawlowski, S. D., and Robey, D., ''Bridging user organizations: Knowledge brokering and the work of information technology professionals.'' MIS Quarterly, 28, 4, 2004: 645-672. |
| Contributor(s) | Mike Wade |
| Date last updated | October 8, 2005 |
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