Realized and potential absorptive capacity: Understanding their antecedents and performance in the sourcing context

Building on different research streams about the nature of knowledge transfers, this paper proposes a conceptual model for understanding knowledge transfer success among recipient companies in a sourcing relationship. Specifically, the role of potential and realized absorptive capacity is emphasized. These two learning components are discussed from two levels of analysis-potential absorptive capacity is discussed at the interorganizational level, and realized absorptive capacity at the intraorganizational level. Antecedents to potential absorptive capacity include three types of interorganizational contexts-knowledge, relational, and institutional. At the intraorganizational level, knowledge-based views of the firm stress how patterns of interaction and relationships among individuals facilitate knowledge integration within the organization. Two types of social context are emphasized-the extent of social embeddedness and closeness of interfunctional coupling. Implications for managerial practice are also discussed. © 2009 M.E. Sharpe, Inc. All rights reserved.