Absorptive Capacity And How Can This Be Used Within Supply Chain Essay

Absorptive Capacity And How Can This Be Used Within Supply Chain Management To Increase Supply Chain Profitability And Responsiveness - Essay Example 317; Boisot, 1998, p. 10; Boer, Bosch, van den, & Volberda, 1999, p. 379) To increase this absorptive capacity, companies often undertake research studies to improve their prospects and to customize their research and development to make information genuinely helpful for the organization’s human resource and for business operational use. The data generated from research are targeted to be integrated in the operation services and in the production of goods for consumers to attain effective and efficient corporate performance (Calori, Johnson, & Sarnin, 1994, p. 437; Camerer & Vepsalainen, 1998, p. 115; Carlsson & Jacobsson, 1994, p. 235; Cohen & Levinthal, 1994, p. 227) Experts opined that absorptive capacity is aimed at adopting ideas to develop an innovative and bring about new engagement sparked by changing economy. The process includes the integration of information to maximize meaningful findings for organizational development and management decision-makings (Deeds, 2001, p. 29; Cohen & Levinthal, 1997, p. 1463).... The researcher will make use of secondary materials from peer-reviewed journals and books sourced from online and public library to substantiate the subject of this study. Researcher will likewise correlate the absorptive capacity of a company’s interest to leverage from its market competitors and delve into the critical effects of company’s absorptive capacity on product innovation, business operations, and profit maximization using the lens of knowledge-based view (KBV) as theoretical foundation. Figure 1. Supply chain leadership and its correlation to resource values and organizational absorptive capacity (Sharif & Irani, 2012, p. 57). Research and Knowledge Management Organizational development and its level of competitiveness are reliant not only on financial capital, human resources and strategic management but also of its absorptive capacity (Rebolledo, Halley & Nagati, 2009, p. 52). Knowledge, through its research and management, are major source of valuable, ra re, and inimitable information to enhance strategic business management, improve customer-relation, expand business operation and sustain good relation with its suppliers (Rebolledo, et al., 2009, p. 53). The absorptive capacity of the organization will also facilitate the alignment of its human resources, corporate performance, and in enhancing its structures to align these with corporate strategies. Internally, it can also promote effective organizational management, increase marketing results, and reduce the impairment of supply chain relations. Through this part, an emphasis on the differences between the two facets of absorptive capacity will be highlighted: potential absorptive capacity that involves the corporate’s acquisition and assimilation of external