An organisation's 'absorptive capacity' refers to:
A) Its ability to hire more people without moving to new offices
B) Its level of current knowledge that makes it possible for it to bring in new knowledge from the environment
C) Its ethical standards in the local community
D) Its diversity along the primary dimension

Question

Quizplus · Accepted Answer

Absorptive capacity refers to an organization's ability to recognize the value of new external information, assimilate it, and apply it to commercial ends. It is not related to the organization's ability to hire more people without moving to new offices, its ethical standards in the local community, or its diversity along the primary dimension.

An Organisation's 'Absorptive Capacity' Refers To