What is the absorbent capacity?

Absorption capacity is a method that the organization processes new information and translates it for its own commercial benefit. This includes the determination of which new information is useful and then applied to the organization to bring tangible results. The deadline also refers to the amount of new information that the organization is able to manage in a productive way.

The concept was created by Wesley Cohen and Daniel Levinthal in 1990. One of his main objectives was to encourage the organization to improve their prospects by watching their own adapted research and development) instead of buying more general information. In addition to obtaining information from the external organization, this method requires that knowledge already integrate into any event inspired by new data.

Absorption capacity should be an ongoing process for any organization that receives its ideas. This requires constant involvement in Changes in the economy, specific markets and competitors' business. The process also includes an intenteGracies of information that are currently not part of the organization's operations to be relevant and useful.

In the years since its introduction, the definition of absorption capacity has been extended to take into account the application of the real world. One of the most frequently accepted modifications was created in 2002, when professors Shaker Zahra and Gerry George added the idea that this method was realistically composed of two concepts: realized absorption capacity (RACAP) and potential absorption capacity (PACAP). This new perspective makes it easier to evaluate what the organization has done with new information, and strategize how to use new data more efficiently in the future.

The theories Zahra and George also considered four more elements of absorption capacity in addition into two umbrella categories. These are acquisitions, assimilation, transformation and exploitation. Creating these categories improved the process of evaluating business during the mainthe steps of the process. Zahra and George also provided a category that could be assigned to specific benchmarks to facilitate solutions to problems in the program absorption capacity of the organization.

While absorption capacity can help the organization use information in a more efficient way, it is also inherently limited. Its usefulness depends on the ability and ingenuity of employees who use this method. While the results are more adapted to specific needs, employees can only get a limited view of operations as a whole.