Abstract   This study addresses the research gap on knowledge transfer on a team level, by examining the potential and realized Absorptive Capacity (ACAP) on the receiver's side and potential and realized Disseminative Capacity (DCAP) on the sender's side. The research question and purpose relate to how ACAP and DCAP can aid innovation development teams in reaching their goals and what role social integration mechanisms play in this process. We develop a theoretical framework in which we synthesize existing literature and through which we analyzed the empirical data.   We follow a qualitative method and employ a single case strategy that fits our empirical data and allows to gain an understanding of social dynamics underlying knowledge transfer. The data was collected through interviews in the R&D department of Atlas Copco, a large Swedish multinational corporation that operates in the mining and tunneling industry. From our analysis we conclude that social integration mechanisms can be used in order to lower the gap between potential and realized capacities. This can in turn lead to a higher innovative output of teams.