Absorptive Capacity Configurations in Supply Chains: Gearing for Partner-Enabled Market Knowledge Creation1

Authors: Malhotra, Arvind; Gosain, Sanjay; El Sawy, Omar A.

Journal: MIS Quarterly (2005)

DOI: 10.2307/25148671

The need for continual value innovation is driving supply chains to evolve from a pure transactional focus to leveraging interorganizational partner ships for sharing information and, ultimately, market knowledge creation. Supply chain partners are (1) engaging in interlinked processes that enable rich (broad-ranging, high quality, and privileged) information sharing, and (2) building information technology infrastructures that allow them to process information obtained from their partners to create new knowledge. This study uncovers and examines the variety of supply chain partnership configurations that exist based on differences in capability platforms, reflecting varying processes and information systems. We use the absorptive capacity lens to build a conceptual framework that links these configurations with partner-enabled market knowledge creation. Absorptive capacity refers to the set of organizational routines and processes by which organizations acquire, assimilate, transform, and exploit knowledge to produce dynamic organizational capabilities. Through an exploratory field study conducted in the context of the RosettaNet consortium effort in the IT industry supply chain,…

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