The absorptive capacity process: an exposition and update

Abstract

PurposeThis study investigates the development of absorptive capacity. Using an integrated cognitive learning perspective, this study provides empirical evidence about the conceptual absorptive capacity model through examining the full process step by step. Two groups of moderating variables were studied—namely, social integration and appropriability—to examine their impact on the process.Design/methodology/approachThis study employed a longitudinal study from a community service program (Kuliah Kerja Nyata) at Universitas Gadjah Mada, Yogyakarta, Indonesia, by using surveys at the beginning and the end of the project. Of 492 teams from 2,444 students participated in the study. Each individual within a team had at least one project assigned to him/her during the project. The absorptive capacity process was examined through six consecutive models and analysed using hierarchical linear modelling. The moderating variables were tested using the Moderated Regression Analysis and Wald tests.FindingsThe study confirms the full cycle of absorptive capacity as an independent, dynamic and complex process; it involves acquiring, assimilating, transforming and exploiting sequencing variables from the individual level to the team level and vice versa using feed-forward and feedback mechanisms adopted from the 4I framework of organisational learning. However, the roles of the moderating variables are still inconclusive due to some possible factors, which were also reflected by the U-phenomenon.Originality/valueThis study provides vital support to the learning theory as well as to the organisation learning concept. This study also reveals empirical evidence about the unsupported moderating variables behave during a project cycle, such as what they function, how they evolve and what we should do about the moderating factors during a project. The findings of this study provide practical suggestions and highlight areas for future research.