Absorptive Capacity: Enhancing the Absorption of Information Technology

This paper studies how to enhance information technology (IT) absorption from the perspective of absorptive capacity. The research questions for this study are: What is the impact of absorptive capacity on a firm's IT absorption, and what would cause some firms to have a higher IT absorptive capacity than other firms? We examine the role of absorptive capacity in IT absorption, and identify five factors influencing IT absorptive capacity. The method of stochastic frontier estimation is used to estimate IT absorptive capacity and then explain the relationship between the five factors and IT absorptive capacity.