This article has the objective to understand the power of Absorptive Capacity (ACAP) in creating competitive advantage. ACAP is related to the ability of an organization to innovate using the stakeholders’ social capital (Cohen & Levinthal, 1990; Zahra & George, 2002; Torodova & Durisin, 2007). For this purpose, it was necessary to develop a research-type exploratory qualitative approach in order to understand a social phenomenon in a given context or scenario. The study showed that in fact organizations may go in cycles of proactive or reactive competitive behavior; and these cycles could determine the success or failure of an organization, as was seen in the case of Apple and Xerox.

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