The “locus of value”: a hallmark of chains that learn

Abstract

The concept of knowledge as a strategic asset of a firm underpins the idea that the “learning” in a learning organisation can be a source of competitive advantage. The principles of learning organisations can also be applied to integrated supply chains, where they demonstrate the same potential to improve competitive advantage. Product flows in chains are linear, but relationships in chains may exist in clusters or nodes that are non‐linear because they involve more than two chain participants. Within these relational nodes, firms have enhanced prospects of learning from one another, and in the process they can create more value than could otherwise be possible. When added value is created through joint learning, a “locus of value” exists. We propose that a locus of value is the hallmark of a learning chain. It improves competitiveness and is difficult to emulate by competitors.