Absorptive capacity and firm performance: an integrative framework of benefits and downsides

Ulrich Lichtenthaler · 2016 · Technology Analysis and Strategic Management

Summary. This paper examines how absorptive capacity—a firm's ability to acquire and use external knowledge—affects financial performance. While absorptive capacity drives innovation and learning, the paper argues it also creates costs and organizational rigidity that can harm performance. The authors propose an inverted U-shaped relationship: moderate absorptive capacity optimizes performance, but excessive capacity generates diminishing returns through increased complexity and reduced internal innovation.

Read the original

Cite this article

Lichtenthaler, U.. (2016). Absorptive capacity and firm performance: an integrative framework of benefits and downsides. Technology Analysis and Strategic Management. https://doi.org/10.1080/09537325.2015.1131258

@article{lichtenthaler-2016-absorptive-capacity-firm-performance-integrative,
  title   = {Absorptive capacity and firm performance: an integrative framework of benefits and downsides},
  author  = {Ulrich Lichtenthaler},
  journal = {Technology Analysis and Strategic Management},
  year    = {2016},
  doi     = {10.1080/09537325.2015.1131258},
  url     = {https://doi.org/10.1080/09537325.2015.1131258}
}

TY  - JOUR
TI  - Absorptive capacity and firm performance: an integrative framework of benefits and downsides
AU  - Ulrich Lichtenthaler
JO  - Technology Analysis and Strategic Management
PY  - 2016
DO  - 10.1080/09537325.2015.1131258
UR  - https://doi.org/10.1080/09537325.2015.1131258
ER  -

Details

DOI: 10.1080/09537325.2015.1131258
Categories: innovation-theory, general-innovation
Added: 2026-04-28