Realizing potential through absorptive capacity to create competitive advantage in hospitality organizations

Abstract

PurposeAbsorptive capacity is a knowledge-processing ability that hospitality organizations should hone to create competitive advantage in a fierce business environment. This study aims to examine an integrative model explaining how hospitality organizations infuse external knowledge into competitive advantage via absorptive capacity processes and opportunity-capturing abilities.Design/methodology/approachThis study used structural equation modeling, using the R Lavaan package, with 288 survey responses collected from hospitality employees.FindingsStructural equation modeling with multiple indirect relationships presents a holistic picture of how hospitality organizations develop externally acquired knowledge into organizational outcomes through detailed absorptive capacity processes. Unit size is found to positively moderate the indirect relationship between external acquisition and competitive advantage through knowledge transformation only. Competitiveness level negatively moderates indirect relationships through assimilation and transformation.Practical implicationsThe findings highlight the importance of hospitality organizations’ knowledge management capabilities through acquisition, assimilation, transformation and exploitation processes. These integrative mechanisms can be facilitated by intraorganizational coordinative processes through collective interpretations and applications of knowledge and effective organizational routines based on management and technical support.Originality/valueThis study proposes an integrative model encompassing a process perspective and the role of intraorganizational coordination in bridging potential and realized absorptive capacity.