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:
“The terrifying message of gay liberation is that men are capable of loving their brothers. It should be sweet news to every woman in the world, for, if the capacity of men to love whom they have been taught to treat as competitors and enemies can transcend their education, the world can begin to heal.”
—Jane Rule (b. 1931)