Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes

Following the process-based definition of absorptive capacity, this article identifies technological and market knowledge as two critical components of prior knowledge in the organizational learning processes of absorptive capacity. Data from a multi-informant survey conducted in 175 industrial firms show that exploratory, transformative, and exploitative learning have complementary effects on innovation and performance. The results emphasize the multidimensional nature of absorptive capacity, and they help to explain interfirm discrepancies in profiting from external knowledge. Moreover, the findings underscore the importance of dynamic capabilities in contexts characterized by high degrees of technological and market turbulence.