Absorptive capacity: towards individual or organizational themes

Abstract

Purpose: This study evaluates the relationship between Individual Absorptive Capacity, Social Integration Mechanisms and Organizational Absorptive Capacity. Using an integrated cognitive learning perspective, this study provides empirical evidence about the conceptual absorptive capacity (ACAP) model through examining the full process systematically. Two groups of moderating variables were studied—namely, social integration and appropriability—to examine their impact on the process. Design/methodology/approach: This study employed a longitudinal study on metal mechanic companies in Brasil by using 427 survey responses and Structural Equation Modeling (SEM). Data analysis was  performed considering: i) Cronbach's alpha; ii) Composite Reliability; iii) Average Variance Extracted (AVE); iv) Fornell and Larcker criteria; v) Evaluation of Pearson Coefficients of Determination (R2); vi) Effect Size (f2) or Indicator of Cohen; vii) Predictive Validity (Q2); and viii) Student's t-test. Following the estimation of the structural model (path coefficients) using the Partial Least Squares method via SmartPLS software version 3.2.8. The absorptive capacity process was examined through six consecutive models and analyzed using hierarchical linear modelling. Findings: The study confirms that social integration mechanisms are required from organizations to create a positive environment for individuals to develop knowledge in the organizational and individual absorptive capacity levels. Social integration mechanisms can have a direct or moderator effect on the dimensions of the ACAP. The complete cycle of absorptive capacity is self-reliant, dynamic, and complex; it involves acquiring, assimilating, transforming, and exploiting variables from the individual to the team level and vice versa. The results align with the micro-foundations perspective because it assumes that absorptive capacity is associated with the knowledge and cognitions of individuals. Originality/value: This study provides vital support to the learning theory as well as to the organization-learning concept. This study also reveals empirical evidence that the social integration mechanisms play a key role in facilitating both individual and organizational knowledge transfer process. The findings of this study provide functional suggestions and highlight areas for future research.