Benchmarking absorptive capacity for sustainability: a study of Indian firms

Purpose The paper aims to explore the attributes and systemic characteristics of absorptive capacity in sustainability oriented firms in India. Such understanding shall pave a way to integrate knowledge about societal stakeholders with technological and market knowledge. The study may help other firms to benchmark their business process considering sustainability aspects to integrate a broader set of stakeholders in decision making. Design/methodology/approach A questionnaire-based survey was conducted to gather responses from 689 managers of 60 firms belonging to various industry sectors. Absorptive capacity of firms based on result of factorial analysis, variances explained by factors and rank of attributes is presented. Findings The study provides a glimpse of variability in steps taken by firms to remain competitive in current and future markets. This study highlights the importance of benefits sharing among alliance partners, knowledge-management processes, social integration for tacit knowledge and exploration of new knowledge sources. Surveyed firms require improvements in employee's skill set up-gradation, exploitation of knowledge spread across different departments and suitable training systems to promote knowledge sharing behaviour. Research limitations/implications The sample of study covers respondents mainly from Health, Safety and Environment/Sustainability/Clean Development Mechanism departments so leading to certain biasness in their perception. Practical implications The study may lead organizations to transform business processes to integrate stakeholder's concerns and expectations. Social implications The study may help organisations to develop important attributes of absorptive capacity for effective integration of stakeholders considering sustainability challenges. Originality/value This research article enhances understanding on common aspects of absorptive capacity, dynamic capability and sustainability strategies.