Using social integration mechanisms to boost absorptive capacity: Walking a tightrope

Abstract

With the increasing recognition of the value of external knowledge, organisations are interested in understanding how to boost their absorptive capacity. Social integration mechanisms have been theorised as a key predictor of absorptive capacity, both as a necessary condition for the development of its dimensions (knowledge acquisition, assimilation, transformation and application) and as a contingency factor that influences the relationships between these dimensions. However, the empirical evidence that explores these ideas is limited. To address this, we explore the survey data from 145 Brazilian firms and find that social integration mechanisms play a controversial role in absorptive capacity. Without a certain level of social integration mechanism usage, high levels of the absorptive capacity dimensions are not possible. However, social integration mechanisms also dampen the positive effects of knowledge acquisition on knowledge assimilation and transformation. Therefore, the highest level of usage of social integration mechanisms is not always beneficial for organisations.