The correct option is A Absorptive capacity
Absorptive capacity is a firm's ability to identify, assimilate, transform, and apply valuable external knowledge. Put another way, absorptive capacity is a limit to the rate or quantity of scientific or technological information that a firm can absorb. Absorptive capacity, the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovativecapabilities. Its a function of the firm's prior knowledge