Paper Type

Complete

Abstract

Drawing on the Knowledge-Based View, this conceptual paper develops a model proposing that cognitive distance increases asymmetric absorptive capacity (AACAP), which weakens cross-functional integration and ultimately constrains firm performance. The study further theorizes that GenAI-enabled socialization moderates this relationship by supporting context-sensitive explanation and cross-domain interpretation, thereby shaping the extent to which cognitive distance translates into AACAP. The framework suggests that AACAP serves as a mechanism through which cognitive distance constrains firm performance via weakened cross-functional integration. The model is designed for empirical testing using a cross-sectional survey of organizations. This study offers practical implications by highlighting how organizations can embed GenAI tools to strengthen knowledge integration within firms, enabling them to more effectively leverage distributed expertise and improve performance. Theoretically, by integrating cognitive distance, AACAP, cross-functional integration, and GenAI-enabled socialization, this framework advances understanding of how GenAI functions as an integrative enabler within the Knowledge-Based View

Paper Number

1349

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Aug 15th, 12:00 AM

Cognitive Distance, Asymmetric Absorptive Capacity, Cross-Functional Integration, and Firm Performance: The Moderating Role of GenAI-Enabled Socialization

Drawing on the Knowledge-Based View, this conceptual paper develops a model proposing that cognitive distance increases asymmetric absorptive capacity (AACAP), which weakens cross-functional integration and ultimately constrains firm performance. The study further theorizes that GenAI-enabled socialization moderates this relationship by supporting context-sensitive explanation and cross-domain interpretation, thereby shaping the extent to which cognitive distance translates into AACAP. The framework suggests that AACAP serves as a mechanism through which cognitive distance constrains firm performance via weakened cross-functional integration. The model is designed for empirical testing using a cross-sectional survey of organizations. This study offers practical implications by highlighting how organizations can embed GenAI tools to strengthen knowledge integration within firms, enabling them to more effectively leverage distributed expertise and improve performance. Theoretically, by integrating cognitive distance, AACAP, cross-functional integration, and GenAI-enabled socialization, this framework advances understanding of how GenAI functions as an integrative enabler within the Knowledge-Based View

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