Enhancing Absorptive Capacity for Innovation and Change: The Role of Structural Determinants

Abstract

In 1989, absorptive capacity was introduced as an important factor for organizational innovation and change. Since then, the concept has been enhanced through reconceptualizations and extended by various empirical studies. However, previous research paid sparse attention to determinants of absorptive capacity and especially the single dimensions of the knowledge absorption process. Consequently, it remains unclear why some firms are better able to absorb new external knowledge than others. This paper focuses on organizational structure as one important determinant of absorptive capacity. Using case studies of two German high-tech firms, the paper discusses four structural factors influencing the acquisition, integration and exploitation dimensions of absorptive capacity: division form, R&D centrality, gatekeeper positions and interface positions. The paper enhances our understanding of the knowledge absorption process and provides propositions for future research.

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