Managing and Developing Absorptive Capacity: A Multilevel Network Approach

Not only internal organizational factors, but also external network factors can influence absorptive capacity. We develop a multilevel conceptual model relating key network properties to absorptive capacity. We argue that the important properties of network structure for a firm’s absorptive capacity are network positions (i.e. centrality and structural autonomy), properties of connected relations (i.e. strength-of-ties), and the overall network properties (density network) will influence the scope, flexibility and efficiency of knowledge absorption. By occupying a central position in the network or balancing different ties, a firm can develop the overall absorptive capacity. Lastly, this study concludes implications and the future direction of research.