On Filling and Squeezing a Sponge

Abstract

An increasingly complex, dynamic, and interdependent organizational environment has driven many organizations to favor leaner and flatter organizational structures. This is often accompanied by the utilization of strategic human resource management (HRM) practices that seek to enhance employee abilities and motivation and provide opportunities for participation in decision-making. While previous research has considered the effects of such practices for overarching organizational performance, the circumstances outlined above have also renewed emphasis on internalizing and utilizing external knowledge (absorptive capacity) as a precursor to generating innovative outcomes and in turn increasing..