Purpose
This paper analyses the relationships between congenital learning and realized absorptive capacity and tries to identify whether absorptive capacity impacts on international organizational performance in today’s global business environment.

Design/methodology/approach
The research model and hypothesized relationships are empirically tested using the structural equation modelling approach, validated by factor analysis of 128 SMEs in the UK telecommunications sector.

Findings
Our findings suggest that, in order to achieve higher levels of realized absorptive capacity, managers need to create and support a congenital learning process. Furthermore, if an SME does not achieve the required realized absorptive capacity then international organizational performance is likely to deteriorate.

Originality/value
SMEs need to provide and support a learning process, which is customised and based on three sub-processes: 1) the framework for transferring knowledge; 2) the framework for transforming knowledge; and 3), an open organizational context. Based on these results, transferring and transforming are important sub-processes but are not sufficient for updating congenital knowledge.