Unlocking Firm Success: Agility and Absorptive Capacity Converge for Superior Performance
Firm agility and absorptive capacity are important for success in a changing business world. Researchers compared these two concepts and found that they are similar in many ways. Agility involves sensing and responding quickly to changes, while absorptive capacity is about learning and applying new knowledge. When these two are aligned, firms perform better in dynamic environments. This shows that agility could be a special type of absorptive capacity, leading to improved performance.