Abstract
PurposeThis paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes.Design/methodology/approachSample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model.FindingsResult of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments.Research limitations/implicationsThis study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity.Practical implicationsThe study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions.Social implicationsThe study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge.Originality/valueThere are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
