Hello everybody

In our today's show, I talk about a concept closely related to the concept of dynamic capabilities. Absorptive capacities relate to the ability of an organisation to acquire new knowledge. Actually, the concept is pretty straightforward: if you want to acquire new knowledge, you have to be ready for it and you need to have other knowledge that is a kind of prerequisite to the focal knowledge. E.g. if you want to adopt AI in your firm, you need to know not only what AI is but you also need to be able to describe your processes, have experience in optimising your processes, and your need to have the necessary personnel and infrastructure. If you are not ready to absorb, the new technology (or even the needed personnel) will not find the "place" in your firm.

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Best

Eugene (Yevgen)