Social Networks and Absorptive Capacity

The resource-based view of the firm regards knowledge as one of the most important organizational assets and a key strategic resource that contributes unique value to organizations. The acquisition, absorption and internalization of external knowledge are central to an organization-s innovative capabilities. This ability to evaluate, acquire and integrate new knowledge from its environment is referred to as a firm-s absorptive capacity (AC). This research in progress paper explores the link between interorganizational Social Networks (SNs) and a firm-s Absorptive Capacity (AC). Based on an in-depth literature survey of both concepts, four propositions are proposed that explain the link between AC and SNs. These propositions suggest that SNs are key to a firm-s AC. A qualitative research method is proposed to test the set of propositions in the next stage of this research.

Authors:

• Rachelle Bosua
• Nina Evans

Keywords:

• Knowledge
• Innovation
• Absorptive Capacity
• Social Networks

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