Previous discussions on international competitiveness have primarily been addressed at the macroeconomic level. However, since a nation's economic development is generally the aggregate of production achieved by individual firms, and a nation's international competitiveness is determined by the international competitiveness of individual firms, this paper discusses Korea's macroeconomic international competitiveness issues from the perspective of organization theory, focusing on the absorptive capacity of firms at the microeconomic level. First, a conceptual framework regarding the process of absorptive capacity accumulation at the firm level is presented. This framework is then used as an analytical tool to diagnose the past and present of the Korean economy. Finally, several policy recommendations for enhancing international competitiveness are proposed.