Corporate culture, absorptive capacity and IT success

Abstract

This study examines absorptive capacity’s role in IT implementation success. Absorptive capacity is the organization’s ability to recognize the value of new information, assimilate it, and apply it to commercial ends [Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(March), 128–152]. Based on previous research, this study proposes a measure of absorptive capacity that includes managerial IT knowledge and communication channels and tests its relationship to the application of new technology in the form of expert systems implementation. Related to claims about the importance of absorptive capacity are claims that a “learning culture” or “knowledge-friendly culture” is necessary in order for knowledge to be gained and effectively used within the organization. This study examines the type of corporate culture that influences absorptive capacity. The results provide support for absorptive capacity’s proposed dimensions and its antecedent of corporate culture that act to influence the implementation of new technologies.