Absorptive Capacity as a Catalyst for Resilience in SMEs: A Literature Analysis

Kule Julius Warren
Department of Business Administration, Faculty of Commerce, University of Eswatini
Private Bag 4, Eswatini
ORCID – https://orcid.org/0000-0003-3029-7899
Email: kulewarren@gmail.com

Abstract: Small and medium-sized enterprises (SMEs) are vital for economic development but are particularly vulnerable to disruptions due to limited resources. The concept of absorptive capacity (AC), which refers to a firm’s ability to acquire, assimilate, transform, and exploit external knowledge, has emerged as a key mechanism for enhancing resilience in SMEs. While core dimensions of AC are well-researched, additional aspects such as breadth and depth of knowledge search, organisational learning, desorptive capacity, and connective capacity warrant further exploration.This study addresses two main questions: (a) What are the key dimensions of theoretical models of AC? (b) How does AC act as a catalyst for resilience in SMEs? A comprehensive literature analysis was conducted, synthesising empirical and theoretical insights on AC and resilience from peer-reviewed articles published between 1990 and 2024 across various databases.The analysis identifies critical dimensions of AC, including its cumulative nature, strategic alignment with environmental dynamism, and role in ecosystem integration. These factors collectively underpin resilience, enabling SMEs to adapt and recover from disruptions while fostering proactive strategies through collaborative innovation. This study contributes to the literature by highlighting how AC extends beyond internal capabilities to leverage external adaptability and ecosystem partnerships. The findings underscore the necessity for SMEs to adopt dynamic knowledge processes and collaborative frameworks to thrive in volatile environments, providing a foundation for future empirical studies on resilience-building strategies in SMEs.