Organizational Absorption

Knowledge Center

What is Organizational Absorption? Meaning.

Organizational Absorption is the ability or capacity of a company or organization to withstand hard, severe or turbulent circumstances by creating buffers or defense mechanisms against sudden shifts in the external or Competitive Environment. While Organizational Agility tries to deal with these circumstances in an adapting, flexible and offensive way, the focus of organizational absorption is on defensive mechanisms.

Typical ways in which organizations can build absorption capacity and weather storms or unexpected crises are (Donald Sull in HBR, February 2009):

• Low fixed costs
• War Chest
• Diversification
• Vast Size (Economies of Scale)
• Tangible Assets (raw materials deposits, real estate)
• Intangible Assets (brand, expertise, technologies)
• Customer Lock-in (high Switching Costs)
• Protected Core Market (provides safe stream of cash)
• Powerful Patron (supporting government, regulator, investor or Loyal Customers)
• Excess Staff (can be shed)

Forum Forum about Organizational Absorption. Start a new topic Share your knowledge or ask a question   🔥 NEW Organizational Absorption Cases and Examples Hi, do you know of a remarkable case or have a good example of how firms can withstand hard, severe or turbulent circumstances by creating buffers or defense mechanisms (organizational absorption)?... 2

Information Sources Various sources of information regarding Organizational Absorption. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Business Continuity Management and Disaster Recovery Management Business Continuity Planning, Disaster Recovery Planning, Crisis Management, Organizational Absorption Presentation about Business Continuity Planning (BCP) and Disaster Recovery Planning (DRP). The presentation includes th... Introduction to Business Continuity Management Understanding of the Need to Have a Business Continuity Plan, Organizational Resilience Organizations have to be prepared to deal immediately with events everywhere around the world (from natural disasters to...

Research Links Automatically jump to further useful sources regarding Organizational Absorption. News Videos Presentations Books Academic More

Compare with: Anti-Fragility (Taleb)  |  Organizational Agility  |  Agile Absorption  |  Anti Hostile Takeover Mechanisms  |  Organizational Resilience  |  Crisis Management  |  Strategic Risk Management

Return to Management Hub: Change & Organization  |  Finance & Investing  |  Knowledge & Intangibles  |  Strategy & Innovation

More on Management  |  Return to Management Dictionary

This ends our Organizational Absorption summary and forum.