ABSTRACT: The study is carried out on the issues related to research and development, and HR flexibility and absorptive capacity of knowledge. Based on the resource-based view theory and knowledge-based view the study has offered a theoretical insight on the relationship between the research and development, and HR fallibility and absorptive capacity of knowledge. The study has concluded that Internal training is one of the factors that has mediating impacts which does not appear very efficient as compared to the other specialists regarding external R&D experts. This would be partly because of the usage of substitutional estimation as compare to the direct dimensions regarding internal HR flexibility, which is not present in the SBS information. Other than these restrictions, the finding of this research shows that “good” HR flexibility could participate in the diffusion of knowledge and growth, which happens by the company’s AC and findings in innovation outputs for instance patents or new products. For instance, the specialists from external R&D would increase the growth of AC during integration with the internal R&D by encouraging the investigation of perceptions from the external company’s knowledge base. In the same way, the development of significant workers by the efforts of the company’s training can mediating the functions of cross-functional groups that integrate the internal R&D assets along with attained external knowledge.
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