In business administration, absorptive capacity is used to measure firm's ability to value, assimilate, and apply new knowledge. It is studied on multiple levels (individual, group, firm, and national level). Antecedents are prior-based knowledge (knowledge stocks and knowledge flows) as well as communication.

the individual and/or organizational openness to change and innovation, and the capability or preparedness for being able to integrate it. View records related to this term