Abstract:

The aim of this research is to critically review absorptive capacity conceptualization and operationalization. Although Cohen & Levinthal (1990) highlight to multidimensionality of ACAP, researchers have conceptualized it as a unidimentional construct, encompassing knowledge acquisition, assimilation, transformation and exploitation. From epistemological and ontological perspectives knowledge acquisition and assimilation differ from other capacities, Namely; Knowledge transformation and exploitation. Knowledge acquisition and assimilation represent knowledge conversion from explicit-to- tacit and tacit-to-tacit processes that should be done at individual level of analyses. Accumulated and assimilated knowledge with organization learning facilitate transformative process to exploit knowledge for business purposes. Thus, ACAP should be conceptualized and operationalized as a multilevel, multidimensional and latent construct involving distinctly dynamic capabilities. It involves a new way of thinking from epistemological and ontological perspective.