Nurturing employee market knowledge absorptive capacity through unified internal communication and integrated information technology

Organizations that are actively engaged in the dissemination of market information frequently question whether this effort improves employee information processing. We examined how the adoption of two integrative dissemination mechanisms, unified internal communication and information technology integration, is critical to enhancing employee market knowledge absorptive capacity. Using data from 211 industrial firms, we found that the existence of a greater market knowledge base and explicit market knowledge within firms determines the use of these mechanisms, which in turn increases employee absorptive capacity. Indeed, the mechanisms serve as full mediators for this ability, thus accentuating their value for knowledge, information technology, and innovation management.