Literature review on the definition of absorptive capacity in firms the conceptualization process an

Although there are many ways for a firm to gain a competitive advantage, the most important of these are innovation and strategic flexibility. One of the most effective tools to achieve innovation is to increase the absorptive capacity so that the information and technologies developed outside the enterprise can be more easily understood and included in the internal production factors. In this study, what the concept of absorptive capacity is, what needs it emerged from, and how it has changed over time are examined. The aim of the study is to provide to strategic decision makers of businesses seeking to gain competitive advantage with more detailed information about activities and methods that will increase the absorptive capacity.