Knowledge Management Practices as a Source of a Firm’s Potential and Realized Absorptive Capacity

Abstract

This paper aims to assess the connections between knowledge management practices and a firm’s potential and realized absorptive capacities. We use hierarchical multiple regression to test our theoretical framework using survey data collected from 94 Russian firms. By critically reviewing the antecedents of particular absorptive capacity subsets at the managerial, intra-organizational and inter-organizational levels, our study reveals the key knowledge management practices—work organization, information technologies, learning mechanisms, training and development and strategic management of knowledge—that enhance a firm’s ability to acquire and assimilate knowledge (potential absorptive capacity) and to transform and exploit knowledge (realized absorptive capacity).

Keywords:

• Knowledge management practices
• potential absorptive capacity (PAC)
• realized absorptive capacity (RAC)
• Russia