Absorptıve Capacıty and Competıtıve Advantage in Dısruptıve Busıness Envıronment

Abstract

In today’s rapidly evolving and disruptive business environment, organizations are increasingly challenged to generate and maintain competitive advantage. This study presents a comprehensive literature review about absorptive capacity—defined as a firm’s ability to acquire and assimilate external knowledge, as potential absorptive capacity, to transform and exploit new knowledge, as realized absorptive capacity—related to competitive advantage, by synthesizing prior research from strategic knowledge management perspectives. The review identifies key themes, theoretical foundations, and empirical findings that link absorptive capacity to competitive advantage. The study explores how firms leverage absorptive capacity to adapt to disruptions, foster and improve competitive performance of firm. It highlights the relationship between knowledge acquisition processes and organizational performance, emphasizing that firms with strong absorptive capacity are better positioned to anticipate changes and respond effectively. The study also discusses key determinants of absorptive capacity, including organizational learning, prior knowledge, and knowledge-sharing mechanisms. Findings suggest that absorptive capacity strengthens resilience and long-term competitiveness in uncertain environments. The paper concludes by offering managerial implications for building and sustaining absorptive capacity as a strategic asset in the context of disruptive business environment.