Organizational wisdom : the impact of organizational learning on the absorptive capacity of an enterprise

Abstract

Purpose: In this article, we analyze the concept of organizational wisdom, indicating its key elements and verifieng the relationships between them. Design/Methodology/Approach: The study was conducted at Vive Textile Recycling Sp. z o.o in Poland. Empirical data was collected from 138 managers using the PAPI technique. Structural equation modelling (SEM) was performed to test the research hypotheses. Additionally, the significance of indirect effects was checked, using the bootstrap method. Findings: Our findings show that organizational wisdom can, from the perspective of management sciences, be considered as a configuration of two elements: organizational learning and absorptive capacity. Our analysis shows that exploitative organizational learning plays an important role in shaping both potential and realized absorptive capacity. Exploratory organizational learning, in contrast, only affects the realized absorptive capacity. Practical Implications: Our research in practice will allow managers to understand that for the company to successfully achieve its goals, considering the changing environment, it should show organizational wisdom. To shape the ability to acquire, assimilate, transform, and make use of valuable external knowledge, they ought to rely on procedures (processes, databases, competences, etc.) that they know well. Their recent procedures or processes will only be capable of influencing their ability to transform and apply external knowledge. Originality/Value: The value of our research is drawing attention to the categories of organizational wisdom, which is not often analyzed in management sciences. The originality of our considerations consists in our attempt to describe the phenomenon not only by indicating its main elements, but also by establishing the relationship between them.