Managing potential and realized absorptive capacity: how do organizational antecedents matter?

TLDR: In this article, the authors explore how organizational antecedents affect potential and realized absorptive capacity and find that organizational mechanisms associated with coordination capabilities (cross-functional interfaces, participation in decision making, and job rotation) primarily enhance a unit's potential absorptive capacities.

Abstract: Exploring how organizational antecedents affect potential and realized absorptive capacity, this study identifies differing effects for both components of absorptive capacity. Results indicate that organizational mechanisms associated with coordination capabilities (cross-functional interfaces, participation in decision making, and job rotation) primarily enhance a unit's potential absorptive capacity. Organizational mechanisms associated with socialization capabilities (connectedness and socialization tactics) primarily increase a unit's realized absorptive capacity. Our findings reveal why units may have difficulty managing levels of potential and realized absorptive capacity and vary in their ability to create value from their absorptive capacity.

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TABLE 2 Results of Hierarchical Regression Analyses:

TABLE 1 Means, Standard Deviations, and Correlationsa

Frequently asked questions

Q1. What are the contributions mentioned in the paper "Managing potential and realized absorptive capacity: how do organizational antecedents matter?" ?

In this paper, the authors proposed a method to solve the problem of the problem.AND ǫ 

Q2. What are the main components of absorptive capacity?

Although cross-functional interfaces, participation in decision-making, and job rotation have relatively little impact, they also enhance a unit’s realized absorptive capacity. 

Q3. What is the effect of socialization tactics on the development of new knowledge?

Socialization tactics will be negatively related to acquisition and assimilation of new external knowledge (i.e. potential absorptive capacity)Socialization tactics affect the establishment of interpersonal relationships and lead to thecongruence of values, needs, and beliefs among individuals within units (Ashforth & Saks, 1996; Feldman, 1981; Van Maanen & Schein, 1979). 

Q4. What did the authors do to examine whether common method bias may have augmented relationships?

The authors also performed Harman’s one-factor test on items included in their regression model to examine whether common method bias may have augmented relationships. 

Q5. What is the relationship between connectedness and acquisition and assimilation of new external knowledge?

Connectedness will be negatively related to acquisition and assimilation of new external knowledge (i.e. potential absorptive capacity)Connectedness develops trust and cooperation and fosters the commonality of knowledge(Rowley et al., 2000). 

Q6. What does the study show about the effect of participation in decision-making on the acquisition of new?

Participation in decision-making, however, only increases acquisition of new external knowledge; it does not enhance assimilation of newly acquired knowledge. 

Q7. What is the effect of routinization on the ability to integrate existing knowledge?

Although it has been suggested that routinization enhances efficient integration of existing knowledge (cf. Grant, 1996; Gersick & Hackman, 1990), their study reveals that it impedes the flexible incorporation of25newly acquired and existing knowledge (Volberda, 1996). 

Q8. How did the respondents describe their ability to absorb new external knowledge?

Using a nine-item scale ( = .90), respondents described their unit’s ability to absorb new external knowledge regarding a new knowledge-intensive financial service, i.e. employee benefits, that had been released six months before the initial questionnaire. 

Q9. What is the relationship between routinization and the acquisition of new external knowledge?

Routinization will be negatively related to acquisition and assimilation of new external knowledge (i.e. potential absorptive capacity)Routine tasks establish automatic patterns of behavior and increase understanding of task relationships.