MNG3702 EXAM
Question 1
1.1 Absorptive capacity refers to the ability of an organisation to recognise the value
of new, external information, to assimilate it and to use it to address business
problems.
1.2 Four dimensions of absorptive capacity
Acquisition- This refers to firm’s ability to locate, identify, value and
acquire external knowledge that is critical to its operations. In this case,
Tesla only hires motivated and smart people; hence, the company has
high expectations and standards.
Assimilation- The focus of Tesla is on sustainability indicates the
compliance of the company with global demands of business methods
that align with calls for green energy.
Transformation- Tesla, Inc. focuses on encouraging innovation that leads
to useful products for the global market. The company’s progress and
growth are based on technological innovation.
Exploitation- Tesla ensures that its corporate culture encourages
employees to think outside the box. This cultural characteristic recognizes
the importance of new ideas and solutions, but it also emphasizes the
benefits of considering unconventional ways.
Question 1
1.1 Absorptive capacity refers to the ability of an organisation to recognise the value
of new, external information, to assimilate it and to use it to address business
problems.
1.2 Four dimensions of absorptive capacity
Acquisition- This refers to firm’s ability to locate, identify, value and
acquire external knowledge that is critical to its operations. In this case,
Tesla only hires motivated and smart people; hence, the company has
high expectations and standards.
Assimilation- The focus of Tesla is on sustainability indicates the
compliance of the company with global demands of business methods
that align with calls for green energy.
Transformation- Tesla, Inc. focuses on encouraging innovation that leads
to useful products for the global market. The company’s progress and
growth are based on technological innovation.
Exploitation- Tesla ensures that its corporate culture encourages
employees to think outside the box. This cultural characteristic recognizes
the importance of new ideas and solutions, but it also emphasizes the
benefits of considering unconventional ways.
