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:
“Managing a tantrum involves nothing less than the formation of character. Even the parent’s capacity to cope well with conflict can improve with this experience. When a parent knows he is right and does not give in for the sake of temporary peace, everybody wins. The parent learns that denying some pleasure does not create a neurotic child and the child learns that she can survive momentary frustration.”
—Alicia F. Lieberman (20th century)