A full understanding of macro-level constructs requires a deep study of their micro-foundations or subsystems. Firm level constructs are created and shaped by lower-level psychological and behavioral mechanisms. We argue that it is necessary to clarify the influence of the CEO, the top management team (TMT) and their complementarities on TMT absorptive capacity. Through the study of 613 medium sized firms, we propose that TMT absorptive capacity could be more oriented to potential or realized absorptive capacity depending on the CEO tenure and the TMT transactive memory. Both make a difference in achieving TMT’s absorptive capacity.

Keywords: Potential absorptive capacity, realized absorptive capacity, top management team, CEO tenure, transactive memory

Co-authors: (García-Granero, A., Fernández-Mesa, A, Jansen, J., and Vega-Jurado, J. )