An organization's absorptive capacity refers to:
A) its ability to hire more people without moving to new offices.
B) its level of current knowledge so it can bring in new knowledge from the environment.
C) its ethical standards in the local community.
D) its diversity along the primary dimension.
E) its ability to conduct business through virtual work.

Question

Quizplus · Accepted Answer

Absorptive capacity refers to an organization's ability to acquire new knowledge and skills from the external environment and incorporate them into its current knowledge base. It involves the ability to recognize the value of new information, assimilate it, and apply it to commercial ends.

An Organization's Absorptive Capacity Refers To