Distinguishing Absorptive Capacity based on the Nature of Knowledge : The Casual Relationships among the Sub-Components of Absorptive Capacity

The purpose of this study is to establish a new distinction regarding absorptive capacity (AC) and to test the causal relationships among its different dimensions. Unlike prior research that divides AC into potential and realized dimensions based on external knowledge-accessing activities, this study provides a new distinction based on both the nature of external knowledge-accessing activities and external knowledge itself. To empirically test the new distinction and causal relationships among each dimension, we collected data from 378 members of 32 research and development (R&D) teams of two leading Japanese manufacturers and analyzed them through partial least squares structural equation modeling. Our findings show that the processes and routines required for marketing knowledge absorption differ from those for technology absorption; however, the former will help organizations better acquire and assimilate external technology. This study deepens the understanding and nature of AC and provides interesting possibilities for further research, such as the reexamination of the effects and antecedents of AC. Further, this study provides managerial contributions by showing the importance of market orientation to managers of R&D organizations, since absorbing market knowledge will promote the effectiveness of external technology search and absorption activities.