EFFECT OF ABSORPTION CAPACITY ACQUIRED ON ORGANISATIONAL PERFORMANCE

Abstract

Emerging markets have achieved important growth through innovation in services and industrial sectors. However, both research and empirical evidence about innovation development is very limited in Latin America. Innovation-based absorption capacity of different companies is one of the main keys to this growth. This empirical study analysed the relationships between absorption capacity and organisational performance (OP) in a sample of 227 firms in Medellin, Colombia. The findings show that enterprises developing the absorption capacity acquired (ACA) may have better probabilities to improve OP. This study argues that companies whose managers motivate their employees to use information within sources from their industry may have higher probabilities to improve organisational profit and growth.