The Ability to Build: Absorptive Capacity in the Nonprofit Sector

Paper / Report
Innovative Finance / Blended Finance
Eileen A. Setti
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This paper explores the concept of absorptive capacity within the nonprofit sector, examining how organizations acquire, assimilate, transform, and exploit external knowledge to enhance their performance and adapt to changing environments. It discusses the critical role of absorptive capacity in fostering innovation, improving service delivery, and ensuring long-term sustainability for nonprofits. The research contributes to understanding how nonprofits can strategically develop this capacity to leverage new information and achieve greater social impact.

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