An organization’s absorptive capacity is important for facilitating innovation that can lead to organizational performance. I examine the effects of absorptive capacity on open source software development group performance. Specifically, in addition to the commonly noted importance of OSS developers, the role of the Internet-based user community is introduced as fundamental in developing absorp...

Previous research has shown that the knowledge that is available to an organization is an important factor influencing the adoption of open source software (OSS). Hence, it is important that organizations develop their absorptive capacity in order to successfully adopt OSS. Absorptive capacity refers to the ability of an organization to acquire, assimilate, and exploit new knowledge. However, n...

In seeking answer to the question what role can IT based knowledge Capability play in commercialization of innovation, we looked at potential and realized absorptive capacity and ambidexterity . We posit that a firm's absorptive capacity and ambidexterity (ability to explore and exploit) affect its ability to commercialize innovations. Further, absorptive capacity too can be an antecedent to am...

This study uses the concept of absorptive capacity to provide a framework for exploring benefit realization in the post-implementation phase of ERP systems. Success factors of ERP adoption such as: training, communication, process change, and integration extension are organized into two types of knowledge absorptive capacity: potential capacity and realization capacity. This study proposes that...

Top management involvement in IT governance may positively influence the establishment and implementation of effective IT governance within organisations. There are few studies, however, investigating those factors that drive top managements’ ability to absorb IT governance knowledge within organisations. This study offers a deeper understanding of factors that help positively influence top man...

Absorptive capacity confers an ability to recognize the value of new information, assimilate it and apply it to commercial ends. It is well believed that the stronger absorptive capacity means the greater competitive advantage. However, this perception of firms’ knowledge transferring seems to misunderstand real learning due to three characteristics of absorptive capacity: path dependence, rela...

Theories of absorptive capacity propose that knowledge gained from prior experience facilitates the identification, selection, and implementation of related profitable practices. Researchers have investigated how managers may develop absorptive capacity by building internal knowledge stocks, but few have focused on the distribution of this knowledge within the firm and the role managers play in...

BACKGROUND While past research has recognized the importance of the dynamic nature of absorptive capacity, there is limited knowledge on how to generate a fair and comprehensive analytical framework. Based on interviews with 24 Chinese firms, this study develops a system-dynamics model that incorporates an important feedback loop among absorptive capacity, technological innovation, and product ...