This article presents a new model for analyzing determinants of absorptive capacity in companies. We propose that absorptive capacity is determined by a set of internal factors, which we group into three basic categories: organizational knowledge, formalization, and social integration mechanisms. We develop an analytical model and show how can be operacionalized. We pilot our model on a sample of 84 small and medium-sized enterprises (SMEs) located in the province of Valencia, Spain. The results of our pilot study suggest that the model specification is useful to explain the determinants of firm?s absorptive capacity.