Absorptive capacity in virtual teams: examining the influence on diversity and innovation

Purpose - The purpose of the study is to empirically extend and validate a measure of absorptive capacity (ACAP) and examine its role in leveraging the benefits of diversity on innovation within global virtual teams (GVTs). This study validates a multidimensional measure of ACAP for use within the GVT. GVTs are increasingly utilized in industry given their ability to bring together diverse knowledge and experience from geographically dispersed individuals. Design/methodology/approach - The hypotheses of this research were tested using a field survey to collect real world knowledge about GVTs. The survey method is a research technique in which data is collected from a sample of individuals using a questionnaire. Findings - Using a sample of GVT members, the authors find that ACAP significantly mediates the relationships between diversity (deep-level diversity, functional-level) and innovation. Practical implications - The implications for the study of GVTs is discussed and recommendations are offered. GVTs, as investigated in this study, include members that use electronic media for some or all of their interactions and collaboration with other team members. Originality/value - This study validates and operationalizes the multi-dimensional ACAP construct at the GVT level: its relationship with diversity and its influence on GVT innovation.