In business administration, absorptive capacity has been defined as "a firm's ability to recognize the value of new information, assimilate it, and apply it to commercial ends". It is studied on individual, group, firm, and national levels. Antecedents are prior-based knowledge (knowledge stocks and knowledge flows) and communication. Studies involve a firm's innovation performance, aspiration level, and organizational learning. It has been said that in order to be innovative an organization should develop its absorptive capacity.
Read more about Absorptive Capacity: Cohen and Levinthal's Model, Zahra and George's Model, Other Researches On The Subject
Famous quotes containing the word capacity:
“Mankind’s common instinct for reality ... has always held the world to be essentially a theatre for heroism. In heroism, we feel, life’s supreme mystery is hidden. We tolerate no one who has no capacity whatever for it in any direction. On the other hand, no matter what a man’s frailties otherwise may be, if he be willing to risk death, and still more if he suffer it heroically, in the service he has chosen, the fact consecrates him forever.”
—William James (1842–1910)