Analyzing an absorptive capacity : unlearning context and information system capabilities as catalysts for innovativeness

Abstract

This study examines the impact of a company’s unlearning context and information system (IS) capabilities on the company’s ability to challenge of basic beliefs and to implement processes that are explicitly or tacitly helpful in the reception of new ideas (absorptive capacity). We also examine the relationship between absorptive capacity and the existence and enhancement of innovativeness. These relationships are examined through an empirical investigation of 286 large Spanish companies. Our results show that absorptive capacity is an important dynamic determinant for developing a company’s innovativeness. Moreover, this relationship is best explained with two related constructs. Firstly, the company’s unlearning context plays a key role in managing the tension between potential absorptive capacity and realised absorptive capacity. Secondly, the results also shed light on a tangible means for managers to enhance their company’s innovativeness through IS capabilities.