Absorptive Capacity And Disaster Immunity: The Mediating Role Of Information Quality And Change Management Capability

PurposeService organization supply chains provide a context that amplifies the complexity of interorganizational interdependencies and the need to build unique capabilities and innovative solutions, especially when confronted with man-made or natural disasters. Using the lens of complex adaptive systems (CAS), this study aims to investigate the role of absorptive capacity (AC), change management capability and information quality in improving a firm's ability to cope with disasters - disaster immunity (DI). The study uniquely parses absorptive capacity into a three-variable, second-order construct (absorptive human resource management, absorptive complementary knowledge and absorptive infrastructure).Design/methodology/approachUsing data collected from 264 US service firms in a supply chain context, this paper evaluates the research model using the structural equation modeling approach.FindingsThe second-order, three-dimensional framework for AC has far superior psychometric properties as compared to the previous unidimensional conceptualizations. Results show that AC influences a firm's DI through change management capability and information quality - two DI enhancing resources.Originality/valueThe paper builds on previous conceptual discussions of absorptive capacity as a multidimensional construct by operationalizing AC as a latent variable with three dimensions (above). Moreover, this paper shows that AC, change management capability, information quality and DI are interrelated parts of a CAS.