Summary of Absorptive Capacity: A New Perspective on Learning and Innovation Absorptive capacity plays a significant role in the innovation process for a firm. The authors define absorptive capacity as the ability of a company to recognize the value of new, external information, assimilate it, and apply it to commercial ends is significant to its innovative capabilities. This paper begins with the discussion of the cognitive basis for an individual’s absorptive capacity. Furthermore, some factors which have impact on absorptive capacity at the organizational level are highlighted. In specific, the authors elaborate the difference between an organization’s absorptive capacity and individual’s absorptive capacity. This paper also demonstrates how investment influences the future development of a technical capability by introducing a model of firm investment in research and development, in which research and development contributes to a company’s absorptive capacity. The prediction of model highlights the role of a company’s investment in research and development to the knowledge underlying technical change within an industry. Finally, the authors conclude the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations.
Summary of The Dynamic Resource-based View: Capability Lifecycles In recent years, the dynamic resource-based view (RBV) has attracted more and more attention. By definition, the dynamic RBV is designed to deal with resources and capabilities over time. This article introduces the concept of the capability lifecycle (CLC), and the CLC provides a comprehensive framework for the dynamic RBV of the company. The CLC refers to a general pattern and paths in the development of an organizational capability from time to time (Helfat & Peteraf, 2003). Three initial stages of a capability lifecycle are highlighted in the paper, namely founding, development,...
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