Review of Absorptive Capacity in Small and Medium Sized Construction Firms in Nigeria

Abstract

The concept of Absorptive Capacity has been identified as an important tool for firms to sustain, grow and compete in their markets. A few authors have adopted the concept in their study in various dimensions. However, many of the researches emphasized on big firms with complex operating structures and strong research and development background. Not much research has addressed the theory in the perspective of Small and Medium Sized Construction Firms. Construction has been referred to as transaction-oriented business changing from the normal design-bid and builds process, to performance and innovative capacity based business. Due to the urge for Small and Medium Sized Construction Firms to acquire competencies and capabilities required for their sustenance in the face of increased competition by absorbing new skills, knowledge and technology through the recognition of valuable external information, acquiring and translating them through innovation to be able to successfully attain competitive advantage over others. The purpose of this study is to carry out a detailed literature review aimed at understanding the Absorptive Capacity of Small and Medium Sized Construction Firms as presented by earlier previous authors in this area of research. This study adds to existing body of knowledge on Absorptive Capacity by pointing out some important dimensions that are connected to the concept and adoption of new techniques in the perspective of Small and Medium Sized Construction Firms.

Keywords: Small and Medium Sized Firms, Absorptive Capacity, Knowledge Management, Construction Firms, Nigeria