E-learning was thought to be one of the fastest growing industries on both sides of the Atlantic and has been frequently heralded as a transforming influence on global corporate training and higher education. Despite such rhetoric, the adoption, diffusion and exploitation have been slower than anticipated. In this paper we attempt to explain why this might have been the case in Europe by drawing on an increasingly influential body of management literature on the absorptive capacity (ACAP) of organizations to acquire, assimilate and use new technologies and ideas. We supplement this work on absorptive capacity with two other streams of literature on learners and on the business systems or institutionalist perspective, which focuses on the em...