Knowledge transfer is one of the key problem areas in knowledge management. This paper focuses on the transfer of knowledge about the software development process. There is an aim to improve process knowledge and one way of doing it is to introduce commercial development methods. However, doing this is not an easy task. We present a study of how such an introduction of a widespread method was carried out in two large software development organisations. We conclude that a new method has to be adapted and implemented in the organisation in order to make it a part of the organisation specific knowledge base. The new method has to become an integrated part of the existing development process knowledge of the organisation, meaning that it has to be adapted to fit with other organisation specific processes. The ability to do so is the absorptive capacity: the capability to identify and recognise the value of new external knowledge, assimilate it, and apply it
