Digital Commons Network^™

Absorptive Capacity: A Review, Reconceptualization, And Extension, Shaker A. Zahra, Gerard George

Research Collection Lee Kong Chian School Of Business

Researchers have used the absorptive capacity construct to explain various organizational phenomena. In this article we review the literature to identify key dimensions of absorptive capacity and offer a reconceptualization of this construct. Building upon the dynamic capabilities view of the firm, we distinguish between a firm's potential and realized capacity. We then advance a model outlining the conditions when the firm's potential and realized capacities can differentially influence the creation and sustenance of its competitive advantage.