The next section presents such industry innovativeness as an enhancer of organizational efficiency and effectiveness, to the extent that individual firms possess complementary resources, which determine firms' absorptive capacity, as well as bargaining power in appropriating industry learning. The fourth section discusses measurement precision's contribution to innovativeness, communication and cooperation. Innovativeness Perhaps learning industries are more efficient and more diverse. The more diverse and complete the alternative set, the more optimal the problem solution, given any environmental context. Industry learning capacity can also be seen as a liability, in that strategic advantage in this dynamic environment is fleeting, as new and better ideas quickly dissipate across organization borders, and a firm becomes unable to control its innovation.
Customers consequently appropriate most of the benefits.
But, the diffusion of efficiency-enhancing innovation across firm borders to strategic partners, or to otherwise benevolent firms in the value chain, may also enhance the entire value chain's efficiency, and thus confer indirect benefits to the original innovative firm. A firm's Shapley value is the product of its probability of inclusion in any given coalition and its contribution to each potential coalition. They also have higher reservation points, or better alternative uses for their capabilities and resources and will consequently wield more bargaining power as measured by higher Shapley values. Communication and Cooperation Communication and cooperative industry norms are synergistic as enablers of industrial learning, i.e., communication facilitates cooperation, which further improves communication, etc. IT ubiquity enhances both.