The Role of Trust in Absorptive Capacity Operationalization

In this era of rapid growth in information and communication technologies organizations are going through melodramatic changes in their environments and culture. This challenge demands dynamic capabilities to sustain its competitive advantage. One such a capability is the knowledge absorption capability (i.e. absorptive capacity) that can be described as the ability of an organization to acquire, assimilate, transform and exploit knowledge gained from external sources. Absorptive capacity operationalization refers to the functioning of its dimensions. Although absorptive capacity has been extensively studied, the role of trust in operationalizing absorptive capacity is not yet been investigated. This research seeks to understand the role of trust in each of the absorptive capacity dimensions. A qualitative research methodology is employed through exploratory case studies to answer the research question, using semi-structured interviews as a dynamic data collection strategy. A theoretical framework is proposed to further understand the relationship between trust and absorptive capacity. A model will be developed to guide organizations to enhance absorptive capacity towards innovation, improved performance and competitive advantage. The paper is representing work in progress and the framework is currently being tested in the Healthcare industry in Australia.