However, this perspective does not ignore the importance of organizational resources. Wal-Mart has suffered from organizational issues due to unsatisfied stakeholders few months back. Therefore, observing this perspective can lead an organization to protect itself against legal actions.
Role of absorptive capacity
The organizations are not required only to gain information and learn new things. Simply by training and teaching employees new ideas, an organization cannot learn and be effective. The absorptive capacity of the company requires that the new knowledge that is being acquired should have a base knowledge that supports acquiring new knowledge. The employees should have the capacity to absorb, retain and apply the knowledge they are gaining. Hence the absorptive capacity is the ability of an individual, particularly an employee in this case, to know the value and worth of the information gathered so that he/she can use it to the benefit of an organization and adding...
It also has the intellectual capital in the form of knowledge and capabilities of its workforce. The knowledge and intellectual capital cannot be kept in a shelf; rather these are shared with others as the employees interact with each other. The collective knowledge and intellectual capital of a company is stock that keeps flowing from mind to mind. As information is shared, more people become aware and knowledgeable and the organizational effectiveness is positively influenced.
End with a discussion of whether the four modern effectiveness perspectives would apply to a monopoly (yes or no).
No, the four modern effectiveness perspectives apply to a competition-based economy and not the monopoly.
