Research Article
Revisiting the Absorptive Capacity–Firm Performance Nexus: An Integrative Review and Future Research Direction
Peris Phylis Wagio Warui*
,
Godfrey Muigai Kinyua
Issue:
Volume 12, Issue 3, June 2026
Pages:
38-49
Received:
6 May 2026
Accepted:
20 May 2026
Published:
30 May 2026
DOI:
10.11648/j.ebm.20261203.11
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Views:
Abstract: Organizations increasingly operate within digitally interconnected, knowledge-intensive ecosystems characterized by technological disruption, institutional volatility, and intense competition. In such environments, sustainable firm performance depends less on the ownership of static resources and more on the ability to acquire, assimilate, transform, and exploit knowledge in real time. Absorptive capacity has therefore emerged as a critical dynamic capability enabling firms to identify valuable external knowledge, internalize it through organizational learning processes, and strategically deploy it to enhance competitiveness. Despite its prominence, empirical findings on the relationship between absorptive capacity and firm performance remain mixed and inconclusive. This study reviews existing conceptual, theoretical, and empirical literature to identify key knowledge gaps and inform future research. Specifically, it disentangles the dimensions of absorptive capacity—knowledge acquisition, assimilation, transformation, and exploitation—to examine how they individually and collectively influence firm performance. Drawing on organizational learning theory and balanced scorecard theory, the study synthesizes prior evidence to explain how firms convert external knowledge into sustained performance outcomes. The review indicates that absorptive capacity enhances performance through improved learning, innovation capability, strategic adaptation, and operational efficiency. Notably, realized absorptive capacity dimensions (transformation and exploitation) exhibit a more direct relationship with firm performance than potential absorptive capacity (acquisition and assimilation). The study proposes a conceptual model linking absorptive capacity dimensions to firm performance and outlines directions for future research. It contributes to the strategic management literature by advancing a capability–performance perspective that emphasizes knowledge utilization processes over resource possession, particularly in dynamic and turbulent environments.
Abstract: Organizations increasingly operate within digitally interconnected, knowledge-intensive ecosystems characterized by technological disruption, institutional volatility, and intense competition. In such environments, sustainable firm performance depends less on the ownership of static resources and more on the ability to acquire, assimilate, transfor...
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Research Article
The Nexus Between Strategic Visionary Leadership and Organizational Performance: Insights from Telecommunication Providers in Mombasa County, Kenya
Patrick Kibet Rop*,
Godfrey Kinyua
Issue:
Volume 12, Issue 3, June 2026
Pages:
50-62
Received:
15 May 2026
Accepted:
27 May 2026
Published:
4 June 2026
DOI:
10.11648/j.ebm.20261203.12
Downloads:
Views:
Abstract: The telecommunications sector plays a critical role in promoting economic growth, digital connectivity, and technological advancement. However, telecommunication providers in Kenya continue to face numerous challenges, including market saturation, technological disruptions, cyber-security threats, regulatory pressures, and service interruptions that negatively affect organizational sustainability and performance. These challenges have heightened the need for effective strategic leadership capable of enhancing organizational competitiveness and long-term success. This study examined the nexus between strategic visionary leadership and organizational performance among selected telecommunication providers in Mombasa County, Kenya. Specifically, the study sought to determine the effect of strategic visionary leadership on organizational performance. The study was anchored on the Contingency Theory and supported by the Balanced Scorecard perspective. A descriptive research design was adopted. The target population comprised 320 employees drawn from senior, middle, and lower management levels of selected telecommunication providers operating in Mombasa County. Primary data was collected using structured questionnaires. Validity was established through face and content validity, while reliability was assessed through a pilot study. Data was analyzed using descriptive and inferential statistics, and findings were presented using tables and Figures. The study findings revealed that strategic visionary leadership had a positive and statistically significant effect on organizational performance among selected telecommunication providers in Mombasa County, Kenya. The study concluded that visionary leadership enhances operational efficiency, innovation, strategic adaptability, and sustainable organizational growth. The study recommends that telecommunication providers should strengthen visionary leadership practices by promoting future-oriented thinking, innovation, and clear strategic direction to enhance long-term organizational performance.
Abstract: The telecommunications sector plays a critical role in promoting economic growth, digital connectivity, and technological advancement. However, telecommunication providers in Kenya continue to face numerous challenges, including market saturation, technological disruptions, cyber-security threats, regulatory pressures, and service interruptions tha...
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