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International Journal of Management and Business Research

Absorptive Capability and Competitive Advantage: Some Insights from Indian Pharmaceutical Industry

1 J. K. Sharma; 2 A. K. Singh
1Department of Business Administration, University of Lucknow, India. 2Department of Business Administration, GLA University Mathura, India.
Abstract :

Every firm learns through firm specific methods. This learning process is operationalized by firm’s knowledge management practices. Therefore, knowledge to result in successful learning should be assisted by a combinative framework which can enhance a firms’ absorptive capability. This in turn will play a decisive role for achieving competitive advantage. Current literature in strategic management focuses towards dynamic capability as a source of competitive advantage. Earlier studies have focused their attention on direct relationships among few selective factors like knowledge management framework only; therefore the lack of clarity can be traced to under-specification of the models that the previous studies have examined. Specifically, studies provide limited view of absorptive capability by ignoring the constituting factors which should be integrated. Absorptive capability is a type of dynamic capability. Absorptive capability as a construct involves framework for managing knowledge, ability to combine the existing and acquired knowledge and leveraging knowledge through learning for innovation. Using absorptive capability as a mediator a model to understand the drivers of competitive advantage in Indian Pharmaceutical Industry is developed.

Keywords :
Absorptive capability; competitive advantage; Knowledge management framework; Learning capability; Combinative framework

Date Deposited : 28 Mar 2016 15:50

Last Modified : 28 Mar 2016 15:50

Official URL:

Volume 2, Number 3, - 2012

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