The theoretical hypotheseshypothesis of absorptive capacity (AC) are relatively simple; validation and measurement are more complicated. There are still discussions about the best proxy or measurement of AC that archival or survey methods may not provide dependable results. Additionally, a spatial or geographically relevant bounding of the market as a cluster has not been researched in absorption theories. Exterior factors are defining absorptive capacities. However, their contingent effects on variables and forms are not clear. The lack of studies on the external networks and business environment and change in theory versus execution of it on the ground remains as important research subjects. The purpose of this study is to explore the effects of clusters, and the business environment on absorptive capacity from the perspective of contingency theory. Based on a sample of 38 nations, World Bank and Global Innovation Index within the 2013-2018 period data, panel analysis shows that cluster inclusion, and business environment relative to the nation can strengthen the absorptive capacity. The results also show that the proxy variable of absorptive capacity is importantly related to results.