RELATIVE ABSORPTIVE-CAPACITY AND INTERORGANIZATIONAL LEARNING

Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimi late, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the Jinn-level construct absorptive capacity as a learning dyad-level construct, relative absor ptive capacity. One firm's ability to learn from another firm is argue d to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical-biotec hnology RED alliances. As predicted, the similarity of the partners' b asic knowledge, lower management formalization, research centralizatio n, compensation practices, and research communities were positively re lated to interorganizational learning. The relative absorptive capacit y measures are also shown to have greater explanatory power than the e stablished measure of absorptive capacity, R&D spending. (C) 1998 John Wiley & Sons, Ltd.