From environmental knowledge to productivity: unraveling absorptive capacity and knowledge integration in organic microfarming

Purpose This study aims to investigate how micro and small organic farms can enhance productivity by mobilizing absorptive capacity (AC) and knowledge integration. Addressing the persistent yield gap in organic farming, it explores how environmental knowledge – defined as external knowledge on climate change, natural resource conditions and sectoral trends – is assimilated and transformed into technical knowledge – i.e. knowledge about the means and methods underpinning the practice of organic agriculture – thereby enabling technological innovation and improving operational decision-making. Design/methodology/approach Grounded in the knowledge-based view of the firm, the study develops and tests a conceptual model linking environmental knowledge acquisition, technical knowledge proficiency, technological innovation and productivity. Using a longitudinal survey design, data were collected from Spanish family-owned organic farms at two time points and analyzed with PLS-SEM. Findings Results confirm the classical AC pathway: environmental knowledge enhances technical knowledge, which, in turn, boosts innovation and productivity. However, technical knowledge also directly improves productivity through better operational decisions. Furthermore, environmental knowledge can stimulate innovation even without full internal assimilation. Originality/value This study advances AC theory by revealing that productivity gains in resource-constrained settings can result not only from innovation but also from the effective application of assimilated knowledge in everyday operations. By offering a fine-grained perspective on how microenterprises translate environmental and technical knowledge into performance, the study contributes to both knowledge management theory and the development of more resilient and sustainable food systems.