Meaning ● Strategic Absorptive Capacity (SAC) defines an SMB’s ability to recognize, assimilate, transform, and apply external knowledge to drive innovation and growth, specifically crucial for effective automation implementation. Successful implementation hinges on an SMB’s pre-existing knowledge base and its proficiency in acquiring, interpreting, and leveraging novel technological insights. Given limited resources in smaller firms, SAC allows them to strategically select and adapt innovations relevant to their business needs and overall strategy. ● For example, the effective introduction of a new CRM system demands the existing expertise and flexibility to integrate its functions into everyday operations, thus capitalizing on technology to boost effectiveness. ● Without a strategic approach, SMBs risk investing in solutions without realizing the planned efficiency gains, wasting precious capital, time and resources. The degree to which an SMB can integrate these automated innovations becomes the core indicator of successful growth and adaptability in ever competitive markets, enabling quicker response rates to changing conditions.
