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:
“People between twenty and forty are not sympathetic. The child has the capacity to do but it can’t know. It only knows when it is no longer able to do—after forty. Between twenty and forty the will of the child to do gets stronger, more dangerous, but it has not begun to learn to know yet. Since his capacity to do is forced into channels of evil through environment and pressures, man is strong before he is moral. The world’s anguish is caused by people between twenty and forty.”
—William Faulkner (1897–1962)