Absorptive Capacity And Knowledge Management As Antecedents To Innovation Capability

Abstract Absorptive capacity has emerged as one of the most important concepts in the field of strategic management. It has been seen as an essential factor in forming innovation capability. However, the result may differ without the presence of knowledge management. This study discusses knowledge management’s role as a mediating variable to the relationships between types of absorptive capacity and innovation capability. We focused the research on young professionals, hence we gathered data from 180 alumni of Business Administration major who already have sufficient working experience to observe their knowledge management, absorptive capacity, and innovation capability. We used path analysis methodology with SmartPLS software as an assisting tool. Our result shows that realized absorptive capacity has a significant effect on innovation capability with the mediating role of knowledge management.