The different modes for absorbing knowledge: an analytic lens on absorptive capacity from a process perspective

Absorptive capacity is perceived as the firm’s ability to extract external knowledge from the firm’s environment. Despite numerous studies, little is known about the multifaceted processes how firms select knowledge from outside and embed it into the firm’s knowledge base. Based on exemplary case studies, we investigate in this paper the entire process how firms recognize new knowledge and how it is captured and incorporated. Our findings show that knowledge absorption is based on routines that govern knowledge selection and integration into the existing knowledge structure. Knowledge complexity shapes the routine’s characteristics. The absorption of complex knowledge requires more interaction and intertwinedness between knowledge provider and receiver for developing a similar frame of reference that serves as a carrier of knowledge. Finally, firms need to deal with the paradox that simple routines enhance recognition of new knowledge and a complex set of routines in the subsequent stages facilitate its incorporation.