ABSTRACT
Indonesia has become an important pillar of the manufacturing sector since many of the world’s famous car companies have established their factories there and increased their production capacity in Indonesia. Indonesia has also experienced an extraordinary transition because it has changed from a place for the production of imported cars in the South East Asia region to a large car sales market due to the increase in Gross Domestic Product (GDP). We use the definitions of absorption from Cohen and Levinthal and several other definitions from other researchers such as Zahra and George. This study combines quantitative and qualitative approaches, which involve complex research designs, usually with research stages that might be iterate. By combining these methods, this study aims to achieve a more comprehensive understanding of the implementation of absorption in business performance strategies, experiences and how organizations adopt, use and manage innovation to meet their strategic needs.
