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Realising Value from Absorptive Capacity

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  • Ronald Eastburn

    (Mitchell College of Business, University of South Alabama, Mobile, Alabama 36688-0002, USA)

Abstract

To gain insight into how successful community banks are continuously “adaptive” to environmental challenges, we examined the role absorptive capacity (ACAP) plays in effecting improved performance. ACAP is the formal mechanism used for sensing and experimentation of knowledge — and as such is adopted to acquire, assimilate, transform and exploit knowledge so as to positively influence performance. Data obtained from a survey of 151 community bank CEOs confirmed that ACAP does indeed enhance performance. We also demonstrated the multi-dimensional structure of ACAP, the consequence of cultivating an active learning orientation and the relevance of potential cultural inhibitors on decision behaviour for innovative performance. Several directions for future studies utilising knowledge-based responses are proposed.

Suggested Citation

  • Ronald Eastburn, 2018. "Realising Value from Absorptive Capacity," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-26, March.
    • Handle: RePEc:wsi:jikmxx:v:17:y:2018:i:01:n:s0219649218500119
    DOI: 10.1142/S0219649218500119
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