Absorptive capacity and innovative enterprise systems: a two-level framework

Abstract

The literature on innovation and technological change frequently reminds us that it is very difficult to improve a process that is not well understood. However, a review of past research indicates an implicit consensus that absorptive capacity is a generic organisation-level construct. This paper attempts to present a new conceptualisation of absorptive capacity, which divides absorptive capacity into two distinct levels. The first level represents the firm's general domain-neutral absorptive capacity that its employees/units possess. The second level represents the absorptive capacity in specific areas of knowledge such as customer relationship management, total quality management, knowledge management, including a more extensive discussion of supply chain management.