A Comment on Absorptive Capacity, Entrepreneurial Leadership and High-Velocity Markets

Abstract

This comment presents a new theoretical perspective on absorptive capacity (ACAP) and its nexus between entrepreneurial leadership and innovation patterns in high-velocity markets. High-velocity markets have five main characteristics: rapid-fire technological changes, short product life cycles, rapidly evolving customer expectations, frequent launches of new competitive moves, and the entry of critical new rivals. Firms operating in high-velocity markets have significant innovative imperatives than firms that operate in nonvolatile markets. Under certain market conditions, knowledge and innovative pattern trajectories may change based on the internal knowledge intake and assimilation of that knowledge to harness marketplace opportunities. Firms operating in high-velocity markets rely on knowledge that can be realized and transmitted in conjunction with entrepreneurial decision-making.