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:
“A creative writer must study carefully the works of his rivals, including the Almighty. He must possess the inborn capacity not only of recombining but of re-creating the given world. In order to do this adequately, avoiding duplication of labor, the artist should know the given world.”
—Vladimir Nabokov (1899–1977)