Absorptive capacity is the ability to find and recognize the potential value of new external information, assimilate it, and apply it to commercial ends.
This theme spans both cognitive processing and practical self-awareness, permitting the entrepreneur facility for drawing valid inferences from partial information, assimilating learning between disparate experiences and possessing the wisdom to recognize what information, skills, or knowledge are lacking.
Absorptive capacity was firstly defined by Cohen and Levinthal (1990) as the ability of a firm to recognize the value of new, external information, assimilate it and apply it to commercial ends.
The prior existing knowledge forms the humus in which absorptive capacity develops, namely the ability to recognize the value of new information, assimilate it, and apply it to commercial ends.
This information was assimilated to a transparent description of the program design.
According to that approach, information is assimilated to a commodity that can be exchanged through market mechanisms, requiring stakeholders to negotiate for contractual arrangements that aim at minimizing transaction costs.
Information was assimilated with the distribution of 120 questionnaires to the Breast Screening Units throughout Humberside/ Yorkshire regions relating to postgraduate education within the departments covering all mammographers.
But at most companies, there is usually enough technology available so that initial steps toward operational intelligence can be taken by tapping into existing data streams, mashing them up with Web information and assimilating this into a wiki or onto portal pages that reference a wide scope of information.
My students were forbidden to copy and paste information from the sites into their reports, but some chose to cut and paste the information as an initial step before they worked with that information to assimilate it and summarize it in their own words.
One could hypothesize various reasons as to why self-produced information is better assimilated than other-produced information.
