Critical Analysis of the Use of Absorptive Capacity Theory in IS Research

This paper critically analyzes the use of Absorptive Capacity (ACAP) theory in information systems (IS) research. Drawing on a comprehensive review of the evolution of ACAP theory and models for the construct, we empirically investigate a number of ACAP-related papers published in reputable IS journals. The analysis involves four main areas: 1) summary analysis of ACAP in IS papers; 2) domains of ACAP usage; 3) analysis of hypotheses to show how ACAP is being used to explain various organizational phenomena in IS research; and 4) analysis of measures to gain insights into the operationalization of ACAP in IS research. This research advocates that organization-level ACAP should be applied as the dependent variable in studying the impact of IS. Furthermore, ACAP should be conceptualized as a “capability,” rather than an “asset.” This paper contributes to IS and ACAP studies by investigating and clearly specifying the utility of ACAP in IS research.