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Background:Over the years, factors illustrate the importance of organizational culture and its negative and positive impact on knowledge transfer. The creation of knowledge within an organization has evolved to become a critical factor when it comes to success and competitiveness. In order to improve performance and gain advantage the element of absorption capacity and its perception is a vital factor.   

Problem:Previous research lack of focus on organizational culture between departments and how employees perceive absorption capacity which explains the purpose of this study. 

Theory:The study is built on literature about knowledge management, knowledge transfer, organizational culture, its factors and dimensions, and lastly absorption capacity.

Method:We based our study on a qualitative research design, involving a case company and semi-structured interviews. 

Findings:The findings illustrate that organizational culture has a great impact on knowledge transfer activities between departments and that awareness of individual differences increase absorption capacity. The organizational culture forms the way activities are performed in order to increase absorption capacity.