Enhancing the Potential Absorptive Capacity of the Project-Based Organizations Through Human Resources Development: Evidence from Registered Contractors in Tanzania

The potential absorptive capacity (PAcap) of a firm can best be achieved, givena set of antecedents in terms of knowledge sources and experiences. The limit tothese antecedents however remains unexplored and it offers opportunities forfuture expansion of the ACAP theory through research. The main purpose ofthis study is to examine the influence of human resources development practiceson PAcap of project based organizations (PBOs). The study is explanatory innature and it adopted a cross-sectional research design. In data analysis,simple random sampling technique was applied in selecting 293 representativesfrom 293 contractors and questionnaires was used in data collection as well asthe PLS-SEM with the help of SmartPLS 3.2.8 software. The findings revealthat career development, developmental performance appraisal and teambuilding have positive influence on the PAcap of a firm. The study contributesto the body of knowledge that all of the three human resources development(HRD) attributes are the perfect antecedents of PAcap in the absorptivecapacity theory. It is also recommended that managers and policy makers haveto introduce, initiate and encourage employees to participate in different careerdevelopment programmes, engage fully in developmental performanceappraisal programs and effectively build teams. Future researches onabsorptive capacity are suggested to be conducted in the longitudinal kind ofdesign to accommodate the procedures of knowledge creation from acquisitionto its exploitation.Keywords: Career development, Developmental performance appraisal, team building,Potential absorptive capacity