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MNG3702 ASSIGNMENT 2 SEMESTER 1
ANSWERS
DUE DATE: 21 APRIL 2026
Question 1:
Absorptive capacity refers to an organisation’s ability to recognise the value of new external knowledge,
acquire it, understand it, transform it and apply it commercially to improve innovation and performance.
Tesla demonstrates a high level of absorptive capacity based on the four dimensions of absorptive capacity:
Acquisition
Acquisition refers to the organisation’s ability to identify and obtain valuable external knowledge. Tesla
actively acquires knowledge through hiring highly skilled engineers, investing in research and development,
and monitoring technological advancements in areas such as battery technology and artificial intelligence.
Assimilation
Assimilation refers to the ability of the organisation to analyse, process and understand new knowledge that
has been acquired. Tesla effectively assimilates knowledge by integrating new technological information
into its research and development processes and through collaboration among engineering and software
teams.
Transformation
Transformation refers to the organisation’s ability to combine existing knowledge with newly acquired
knowledge to develop new insights. Tesla transforms knowledge by integrating innovations in software,
battery technology and manufacturing processes to continuously improve its electric vehicles and energy
products.
Exploitation
Exploitation refers to the ability to apply transformed knowledge to commercial ends. Tesla exploits its
knowledge by launching innovative products such as advanced electric vehicles, energy storage systems and
autonomous driving technology, which strengthen its competitive position in the market.
MNG3702 ASSIGNMENT 2 SEMESTER 1
ANSWERS
DUE DATE: 21 APRIL 2026
Question 1:
Absorptive capacity refers to an organisation’s ability to recognise the value of new external knowledge,
acquire it, understand it, transform it and apply it commercially to improve innovation and performance.
Tesla demonstrates a high level of absorptive capacity based on the four dimensions of absorptive capacity:
Acquisition
Acquisition refers to the organisation’s ability to identify and obtain valuable external knowledge. Tesla
actively acquires knowledge through hiring highly skilled engineers, investing in research and development,
and monitoring technological advancements in areas such as battery technology and artificial intelligence.
Assimilation
Assimilation refers to the ability of the organisation to analyse, process and understand new knowledge that
has been acquired. Tesla effectively assimilates knowledge by integrating new technological information
into its research and development processes and through collaboration among engineering and software
teams.
Transformation
Transformation refers to the organisation’s ability to combine existing knowledge with newly acquired
knowledge to develop new insights. Tesla transforms knowledge by integrating innovations in software,
battery technology and manufacturing processes to continuously improve its electric vehicles and energy
products.
Exploitation
Exploitation refers to the ability to apply transformed knowledge to commercial ends. Tesla exploits its
knowledge by launching innovative products such as advanced electric vehicles, energy storage systems and
autonomous driving technology, which strengthen its competitive position in the market.
