Article,

Absorptive Capacity and the Implementation of Knowledge-Intensive Best Practices.

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SAM Advanced Management Journal, 69 (2): 21 - 27 (2004)

Abstract

The information age of the 21st century is intensely competitive. Having the latest information about best practices, for example, and being able to integrate this information with internal know-how may spell the difference between competitive success and failure. Therefore, a firm's absorptive capacity - ability to acquire, assimilate, transform, and exploit knowledge - may determine its level of organizational innovation and adaptability. To encourage and increase absorptive capacity, top management must be committed to the goal, communication across functional boundaries and general knowledge sharing must be encouraged, and organizations must support an open culture.

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