The Role of Absorptive Capacity and Disseminative Capacity on Knowledge Internalization of Organizational Practices

Abstract

The implementation of knowledge has been considered as a positive and final result of the transfer process. This means that we know little about whether the transferred knowledge was appropriated, absorbed or even used by the receiving firm. Thus, the aim of this research is to take the knowledge internalization as a measure to analyze the effectiveness of the knowledge transfer process. That is, if, in fact, the transferred knowledge is internalized in the organizational routines and understands the role of absorptive and disseminative capacity in the process. To this end, a longitudinal case study of a qualitative nature was conducted, involving data and information collection over nine years (2008–2016), 13 interviews taking as a case one of the most important public health, science and technology institutions in Brazil. The findings show that a larger source’s disseminative capacity contributes to a greater appropriation of knowledge by the receiver and a reduction in the internalization time. Moreover, a larger receiver’s absorptive capacity contributed to a greater appropriation of knowledge and reduced the time taken for internalization. The main contribution is providing a deeper understanding of the knowledge internalization as an effective result in transfer process, including an understanding of the role of absorptive and disseminative capacity in the internalization process. Furthermore, this study provides four propositions to explain the phenomenon.