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:
“Just as we are learning to value and conserve the air we breathe, the water we drink, the energy we use, we must learn to value and conserve our capacity for nurture. Otherwise, in the name of human potential we will slowly but surely erode the source of our humanity.”
—Elaine Heffner (20th century)