Abstract
The authors propose a conceptualization of corporate entrepreneurship as an organizational capability that allows firms to overcome internal constraints systematically so that they can reinvent themselves through novel business initiatives. The paper adopts the knowledge-based concept of absorptive capacity to identify the microfoundations of a firm's corporate entrepreneurship capability for opportunity recognition and exploitation. It advances a model that combines the individual-level role of entrepreneurial managers with firm-level effortd to strengthen entrepreneurial processes over time.