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Managing absorptive capacity stocks to improve performance: Empirical evidence from the turbulent environment of Israeli hospitals

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  • Lev, Sara
  • Fiegenbaum, Avi
  • Shoham, Aviv

Abstract

Summary The current paper focuses on the management of external knowledge as a central mechanism when organizations face threats from turbulent environments. Based on absorptive capacity (ACAP) theory, we emphasize ACAP's separation into potential and realized knowledge and suggest that each should be associated with three-dimensional stocks and distinguish between managing knowledge stocks and knowledge flows. Data from 522 managers from 12 Israli hospitals support the theoretical model. Organizations that manage both potential and realized ACAP stocks achieve better performance in a turbulent environment. The paper explores the practical and theoretical contivutions of the new suggested framework by linking environmental competitiveness, ACAP stocks, and performance.

Suggested Citation

  • Lev, Sara & Fiegenbaum, Avi & Shoham, Aviv, 2009. "Managing absorptive capacity stocks to improve performance: Empirical evidence from the turbulent environment of Israeli hospitals," European Management Journal, Elsevier, vol. 27(1), pages 13-25, February.
    • Handle: RePEc:eee:eurman:v:27:y:2009:i:1:p:13-25
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    Cited by:

    1. Mariano, Stefania & Al-Arrayed, Suad, 2018. "Combinations of absorptive capacity metaroutines: The role of organizational disruptions and time constraints," European Management Journal, Elsevier, vol. 36(2), pages 171-182.
    2. Bertha Jimenez & Bojan Angelov & Bharat Rao, 2012. "Service Absorptive Capacity: Its Evolution and Implications for Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(2), pages 142-163, June.
    3. Gebauer, Heiko & Worch, Hagen & Truffer, Bernhard, 2012. "Absorptive capacity, learning processes and combinative capabilities as determinants of strategic innovation," European Management Journal, Elsevier, vol. 30(1), pages 57-73.
    4. Ali, Murad & Park, Kichan, 2016. "The mediating role of an innovative culture in the relationship between absorptive capacity and technical and non-technical innovation," Journal of Business Research, Elsevier, vol. 69(5), pages 1669-1675.

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