Effect of Absorptive Capacity on Technology Diversification & Organizational Performance

Technology has been evolving at an ever-greater rate over the last few decades, and technological diversification is widely considered as a vehicle of organizational growth. However, the development of technological diversification may raise the costs of coordination, integration, and communication efforts, and it may also prevent firms from creating the focus needed in any specific technology domain that it required to realize economies of scale.

According to the resource-based view of the firm, successful