Exploring the relationship between absorptive capacity and ambidexterity-Swedish context

Abstract: This study explores the relationship between ambidexterity and absorptive capacity by conducting a quantitative research study on a sample of 31 companies that operate in different industries in Sweden. The data was collected from the companies’ annual reports and analyzed by using statistical methods through SPSS software. The results show a significant positive relationship between ambidexterity and absorptive capacity, demonstrating the essentiality of the absorptive capacity as a factor that helps the organizations to optimize their exploration and exploitation activities and achieve ambidexterity so that they can develop a strong and sustainable competitive advantage in today’s dynamic business environment. The results of this study show moreover that the companies who have high levels of absorptive capacity are better able to achieve ambidexterity and launch new products/services, acquire patents and enhance their current value offerings. This demonstrates the importance of the absorptive capacity to enhance the innovations activities of the organizations. The study provides valuable practical and theoretical insights to the ongoing debates about ambidexterity and the knowledge management literature, and also to the managers, entrepreneurs and government who are seeking to achieve ambidexterity and increase the organization’s competitive advantage. The limitations of this study include the sample size and the country in which this study is conducted, suggesting a need for future research to address these limitations.