The Concept and the Reconceptualization of Absorptive Capacity: Recognizing the Value

Abstract

Zahra and George (2002) suggested a reconceptualization and extension of the construct "absorptive capacity" in order to reduce the ambiguity and diversity in empirical studies. A reading of the seminal article by Cohen and Levinthal (1990) in light of current research on learning and innovation allowed us to address several ambiguities and underdeveloped links in the proposed new definition and model of absorptive capacity. As suggested in this note, researchers and practitioners will benefit from (1) a redefinition of the first component of the construct, i.e., of "acquisition"; (2) a refinement of the explanation and links of the new component, i.e., of "transformation"; (3) clarifying the new concepts of "potential absorptive capacity" and "realized absorptive capacity" in terms of contents and contribution to value creation; (4) a further elaboration on impact of the contingent conditions of socialization mechanisms and appropriability; (5) adding a new contingent factor, power relationships (6) adding feedback loops in the model of absorptive capacity.

Keywords: innovation, learning, absorptive capacity

JEL Classification: M19, 031, 032