Abstract
Absorptive capacity (ACAP) is an essential component for new product development (NPD) teams to effectively manage knowledge received from external sources. This paper extends the existing theory of ACAP by examining the impact of cross-functional communication on the ACAP of NPD teams at high technology firms in Thailand. The results indicate that all characteristics of cross-functional communication, including frequency, quality, and informality have direct impacts on ACAP. However, only quality and informality have a significantly direct effect on all activities of ACAP, which includes knowledge acquisition, assimilation, transformation, and application.
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