Abstract
This study develops propositions regarding the impact of Absorptive Capacity (AC) on the internationalisation process. It generates a conceptual model based on the empirical examination of small-to-medium sized agro-technology companies. The paper demonstrates that the extent to which firms capture and exploit new information is highly influenced by their AC. The goal is to determine the type of knowledge which firms need, to exploit new and emerging markets. We suggest that AC in high-tech companies exists as two subsets: technological AC and non-core AC. The two ACs affect the daily activities of firms in different ways and influence their strategies, particularly their international strategies.
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