Defining absorptive capacity (after Lane et al25)
| Knowledge acquisition Exploratory learning | The process by which the organisation recognises and understands new knowledge. The prior knowledge of the organisation will be important because the functioning of existing mental models within the organisation will influence value judgements about any new knowledge that appears externally. |
| Knowledge assimilation Transformative learning | A process by which valuable external knowledge is assimilated at multiple levels within the organisation, involving several processes that shape the way that newly acquired knowledge is combined with existing knowledge. |
| Knowledge application Exploitative learning | The process by which the knowledge that has been assimilated by the organisation is transformed and used to produce changes that benefit the organisation's performance. |