When it comes to being a success there are many different factors which must come together within an organization. An organizations ability to capitalize on their strengths while minimizing the potential weaknesses is essential. While there are many different types of resources available within an organization, such as their infrastructure or the product/service that they sell, one of the most valuable resources is that of the workforce.
Successful organizations are able to capitalize on the human intelligence within the organization and use it to drive the success of the organization. In order for organizations to come up with innovative ideas/solutions they must have a knowledge base to draw from. There is a wide assortment of literature on the topic of organizations and human intelligence. However one concept, that of absorptive capacity (ACAP) integrates how the dynamic nature of human knowledge can affect the success of the organization (Cohen and Levinthal, 1990). By combining the ideas behind ACAP with information technology this can help organizations succeed both now and in the future.
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ACAP is a combination of organizational processes and routines which are used by organizations to in four ways to handle knowledge. These processes are used to acquire, assimilate, transform and ultimately exploit the knowledge within the organization. ACAP can further be broken down into two specific forms, potential ACAP and realized ACAP (Zahra and George, 2002). It is these two forms together which help organizations continue to be successful. While it is the realized ACAP which is often discussed, as this is visible in terms of the innovations that the organization comes up with, potential ACAP is also equally important. This is because while right now organizations may exploit a particular piece of knowledge (realized ACAP) they may not be able to transform and exploit other knowledge (potential ACAP). But if conditions changed the pool of potential ACAP will allow them to adapt quickly and easily in order to continue to be successful (Jansen et al., 2005). Especially in larger organizations communications can be difficult. As such it is possible for companies to not completely realized their full potential ACAP. One way which can help mitigate this problem is that of information technology (Bi and Yu, 2008). Information technology, can be used to increase communication. As well specific systems can be designed in order to help store the information surrounding knowledge which exists currently within the organization. By having appropriate information technology systems and staff this will help ensure that organizations are able to maximize on the human intelligence within their organization increasing both potential ACAP and realized ACAP (Lund Vinding, 2006).
However, despite the recognition of the benefits of information technology on ACAP, the literature is lacking. In particular researchers have noted that more research into the economic side of information technology and ACAP is required. Because information technology is a valuable way to cut down costs it can have a significant economic impact on the organization in terms of streamlining expenses while maximizing innovation. As such more studies are needed in order to devise ways to help fully use information technology to increase ACAP (Malhotra et al., 2005). However, there are studies within the literature which have focused on how information technology can improve both potential ACAP and realized ACAP.
In a study published in 2013, used a model to determine if information technology skills, and the use of these skills, could impact the ACAP of an organization. In total 160 European technological firms were used as the sample for this study. The main source of information for each of these companies can from interaction with the CEOs. They found that based on these 160 companies that information technology skills were essential to increased ACAP. Furthermore, the authors concluded that this increased ACAP then in turn may lead to increased success of the organization. But more research is necessary to corroborate these findings (Bolívar-Ramos et al., 2013).
This study highlights the importance of human intelligence in an organization. Yet, it is important to note the ACAP can only occur if the organization has human intelligence to draw from. As such it is important that information technology be used in combination with a diverse workforce (Zahra and George, 2002). An organization could have great information technology systems, but if there is now knowledge base to draw from then there is no way to increase ACAP. As such it is important that organizations aim to employ individuals from a diverse set of backgrounds and levels of experiences. This diversity will help increase the potential ACAP, which if market conditions change, can help ensure the continued success of the organization.
Overall, when it comes to being successful human intelligence is an important aspect for any company. Being able to harness and use this intelligence quickly and easily will allow for increased productivity and increased innovation within the organization. This will then likely translate into increased success. As shown here one way in which companies can increase their ability to use human intelligence is through the use of information technology. This information technology can greatly increase the organizations ACAP, by promoting effective communication and allowing for the creation of systems to store the pertinent information. In conclusion while it is impossible to predict the success of an organization having a large potential ACAP can allow companies to adapt quickly and easily to change. This ability to adapt is likely to help ensure that companies continue to be successful through all types of market conditions.
