Absorptive Capacity of Information Technology and Its Conceptual Model

Abstract

In order to examine the problem of how to improve the use of information technology (IT) in enterprises, this paper makes an exploration from the perspective of organizational absorptive capacity. We propose the concept of IT absorptive capacity from an organizational level. A dynamic process model is developed to further analyze IT absorption. IT absorptive capacity of this process is embodied as six forms: identification, adoption, adaptation, acceptance, infusion, and knowledge management. By means of questionnaire surveys of 76 Chinese enterprises, the main factors that favor or disable the capacity of each stage are discovered. Using the method of system dynamics, a conceptual model of IT absorptive capacity is developed to analyze the action mechanism of the factors in detail. The model indicates that the critical factors are embodied in the aspect of management. Furthermore, it demonstrates that IT absorption is a spiral process, during which IT absorptive capacity evolves dynamically and, consequently, promotes IT use.