Impacts of Absorptive Capacity on Value Creation

Recent development in strategy research has demonstrated the important role of network participation in firm value creation. However understanding the key role of networks in value creation is only the first step. It is substantial to understand, also, the underlying mechanisms that impact firms capability in appropriating and creating value through its participation in networks. Therefore, based on an empirical research study among tourism small and medium enterprises, this paper aims to demonstrate that the extent to which firms can create and appropriate value, would highly influence their absorptive capabilities.