INTEGRATING ABSORPTIVE CAPACITY AND STRATEGIC MANAGEMENT FOR DIGITAL TECHNOLOGY-BASED SMES

In this research, we aim to answer how organizational absorptive capacity (ACAP) component elements are embedded in the strategic management processes of digital technology-based small and medium organizations (SMEs). Following virtual consensus on knowledge as a strategic resource, the organizational capacity to absorb valuable knowledge, leveraging innovation and fostering performance, has become an important topic in strategic management. The basic assumption here is that organizational ACAP may be an important source of competitive advantage for digital technology-based SMEs. This paper contributes to the ACAP field by linking its component elements obtained from relevant published articles to strategic management imperatives for SMEs. Such imperatives were retrieved through a systematic literature review and the proposed links with ACAP component elements examined through case studies in the field. There are also benefits to practitioners, since the implementation of processes related to the proposed links might support management and operations in these specific SMEs.