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Absorptive Capacity in Construction Smes: A Literature Synthesis

Rapid technological changes and increasing global competition are challenging the construction industry. Construction organizations can no longer rely on internal sources to generate new knowledge and technology. The ability to acquire, assimilate, transform and exploit external sources of knowledge and technology are critical components for organizations to survive, grow and compete in the market. This ability is called absorptive capacity. Many researchers have explored absorptive capacity in studies at different levels: individuals, organizations, industry and country. However, most of the studies focus on very large organisations, which have sophisticated structures and strong R&D orientations. Very few studies address absorptive capacity in SME organizations. This paper presents a literature synthesis on absorptive capacity, focussing on SME construction organizations. This paper contributes to the body of knowledge of absorptive capacity by providing relevant literature synthesis in the area and because of the gaps found in the literature, this paper raises questions for further research.