Freelancers and the absorption of external knowledge: practical implications and theoretical contributions

The term absorptive capacity (AC) describes the process of utilising external knowledge. Although firms are becoming increasingly reliant on highly skilled freelancers as a source of external knowledge, the literature on AC has not incorporated this collaboration for freelancers. In this paper, we address this research deficit in two ways: First, we argue that the ability to collaborate effectively and efficiently with freelancers plays a crucial role in the process of absorbing external knowledge. Second, we argue that the example of freelancers challenges researchers to rethink the conceptualisation of organisational boundaries within the concept of AC. Our paper is based upon previous theoretical insights and exploratory empirical data from a research project on German IT freelancers. For the practice of knowledge management, our paper elaborates upon how organisations can enhance their AC by investing in practices and routines that contribute to successful collaboration with freelancers.