Data-driven Applications to Foster Absorptive Capacity: A Literature-based Conceptualization

Abstract

The relevance of data-driven applications for leveraging knowledge embedded in data is growing. Thereby, an organization’s capability to create, disseminate, and exploit knowledge (i.e., absorptive capacity) is a decisive factor in gaining competitive advantages. In this paper, we address the lack of guidance on the development and application of data-driven applications fostering an organization’s absorptive capacity. Based on a structured literature review, we derive seven data-driven application capabilities and match them with an established conceptualization of absorptive capacity. While previous literature did not allow for a specific analysis, our functional representation concretely demonstrates how data-driven applications composed of separate capabilities can foster absorptive capacity in manifold ways. This paper contributes to the literature by providing a structured literature review on the impact of IT on absorptive capacity as well as introducing theoretically-based and modularized data-driven application capabilities.