Innovation Management

1. 1Innovation in the way an organization conducts its business, such as in the techniques of producing or marketing goods or services

   1. ARadical Innovation
   2. BProduct Innovation
   3. CProcess Innovation
   4. DIncremental Innovation
2. 2An innovation that makes a relatively minor change from (or adjustment to) existing practices.

   1. AProcess innovation
   2. BProduct innovation
   3. CIncremental innovation
   4. DRadical innovation
3. 3An innovation that changes the overall design of a system or the way its components interact with each other. For example, the transition from the high-wheel bicycle to the safety bicycle.

   1. AComponent innovation
   2. BArchitectural innovation
4. 4Reasons for selecting a dominant design:

   1. ALearning effects
   2. BBuilding the firms absorptive capacity
   3. CNetwork externalities
   4. DGovernment regulation (legally induced adherence to a dominant design)
5. 5In many industries the value of a product system is strongly related to the number and quality of complements available for it.

   1. ATrue
   2. BFalse
6. 6A non-modular product might have components that are customized to work together, which may enable a level of performance that more standardized components cannot achieve

   1. ATrue
   2. BFalse
7. 7In a [blank_start]platform ecosystem[blank_end], some core part of a product (such as a video game console or music streaming service) mediates the relationship between a wide range of other components or complements (such as video games or music titles) and prospective end users.

   1. Aplatform ecosystem
8. 8In markets where customers have heterogeneous preferences and there are many potential technological options available, firms might use [blank_start]modularity[blank_end] to enable customers to mix and match components, producing a wider array of end products.

   1. Amodularity
9. 9Resources of an intangible nature (such as knowledge) that cannot be readily codified.

   1. ASocially complex resources
   2. BTacit resources
   3. CIntangible resources
10. 10Socially complex resources are activities that emerge through the interaction of multiple individuals.

    1. ATrue
    2. BFalse

11. 11When the relationship between a resource and the outcome it produces is poorly understood, this is called:

    1. AUnnatural complementation
    2. BSocial mismatch
    3. CCausal ambiguity
    4. DDisruptive incremation
12. 12A [blank_start]strategic[blank_end] stakeholder analysis emphasizes the stakeholder management issues that are likely to impact the firm’s financial performance.
    
    A [blank_start]normative[blank_end] stakeholder analysis emphasizes the stakeholder management issues the firm ought to attend to due to their ethical or moral implications.
    

    1. Astrategic
    2. Bnormative
13. 13A company’s [blank_start]core competencies[blank_end] are typically considered to be those that differentiate it strategically.

    1. Acore competencies
    2. Bcore technologies
    3. Cvalues
    4. Dcooperations
14. 14Sometimes the very things that a firm excels at can enslave it, making the firm rigid and overly committed to inappropriate skills and resources. While these systems and norms can prove beneficial in reinforcing and leveraging the firm’s existing core competencies, they can also inhibit the development of new core competencies Rewards for engaging in core competency activities can discourage employees from pursuing more exploratory activities. The phenomenon described is known as [blank_start]core rigidities[blank_end]

    1. Acore rigidities
15. 15In fast-changing markets, it can be extremely useful for a firm to develop a core competency in responding to change. It is possible for a firm to develop core competencies that are not specific to any set of technologies or products, but rather to a set of abilities that enable it to quickly reconfigure its organizational structure and routines in response to new opportunities. These are [blank_start]dynamic capabilities[blank_end]. These enable firms to quickly adapt to emerging markets or major technological discontinuities.

    1. Adynamic capabilities
16. 16As a starting point, a management team is likely to discuss the potential costs and benefits of a project, and the team may create a list of [blank_start]screening questions[blank_end] that are used to structure this discussion. These questions might be organized into categories such as the role of the customer, the role of the firm’s capabilities, and the project’s timing and cost.

    1. Ascreening questions
17. 17[blank_start]Q-sort[blank_end] is a simple method for ranking objects or ideas on a number of different dimensions. This method has been used for purposes as diverse as identifying personality disorders to establishing scales of customer preferences.

    1. AQ-sort
18. 18A partnership between two or more firms involving a significant equity stake by the partners and often resulting in the creation of a new business entity.

    1. AAlliance
    2. BJoint Venture
    3. CCapability transfer
    4. DAlliance contracts
19. 19When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance.

    1. ARelational governance
    2. BContract manufacturing
    3. CEquity ownership
20. 20Reasons for going solo:

    1. AAvailability of capabilities
    2. BProtecting proprietary technologies
    3. CControlling technology development and use
    4. DBuilding and renewing capabilities
    5. EIncreased flexibility
    6. FResource and risk pooling
21. 21A [blank_start]strategic alliance[blank_end] is a temporary relationship that can take many forms. It can be formalized in a contract or an informal agreement. It can be a short-term agreement or a long-term agreement, and it can include an equity investment made by the partners in each other.

    1. Astrategic alliance
22. 22Firms that develop new technological innovations do not always possess the competencies, facilities, or scale to perform all the value-chain activities for the new innovation effectively or efficiently. Such firms might make use of [blank_start]outsourcing[blank_end]

    1. Aoutsourcing
23. 23[blank_start]Resource fit[blank_end] refers to the degree to which potential partners have resources that can be effectively integrated into a strategy that creates value. Such resources may be either complementary or supplementary
    
    [blank_start]Strategic fit[blank_end] refers to the degree to which partners have compatible objectives and styles. The objectives of the partners need not be the same as long as the objectives can be achieved without harming the alliance or the partners

    1. AResource fit
    2. BStrategic fit
24. 24The success of collaborations will depend in large part on the partners chosen

    1. ATrue
    2. BFalse
25. 25[blank_start]Alliance contracts[blank_end] are legally binding contractual arrangements to ensure that partners (a) are fully aware of their rights and obligations in the collaboration and (b) have legal remedies available if a partner should violate the agreement.

    1. AAlliance contracts
26. 26Finally, many alliances also rely on [blank_start]relational governance[blank_end]. This is the self-enforcing governance based on the goodwill, trust, and reputation of the partners that is built over time through shared experiences of repeatedly working together

    1. Arelational governance
27. 27[blank_start]Architectural[blank_end] control refers to the firm’s ability to determine the structure and operation of the technology, and its compatibility with other goods and services

    1. AArchitectural
28. 28The primary argument for diffusing a technology instead of protecting it is that open technologies may

    1. Aprovide rapid adoptions
    2. Bstimulate growth of installed base
    3. Cenable higher pricing
29. 29A [blank_start]mechanistic[blank_end] organization structure is characterized by a high degree of formalization and standardization, causing operations to be almost automatic or mechanical.
    
    An [blank_start]organic[blank_end] organization structure is characterized by a low degree of formalization and standardization. Employees may not have well-defined job responsibilities and operations may be characterized by a high degree of variation.
    

    1. Amechanistic
    2. Borganic
30. 30Large firms are likely to have better developed complementary activities such as marketing or financial planning that enable them to be more effective innovators, and they are also likely to have greater global reach to obtain information or other resources.

    1. ATrue
    2. BFalse
31. 31As a firm grows, its R&D efficiency will increase because of an increased managerial control. That is, the bigger a firm gets the more easily it can monitor and motivate employees.

    1. ATrue
    2. BFalse
32. 32Mechanistic structures are often deemed suitable for fostering innovation. Mechanistic structures achieve efficiency by ensuring rigid adherence to standards, potentially allowing for creativity within the firm.

    1. ATrue
    2. BFalse
33. 33Large firms often make less use of formalization and standardization because as the firm grows it becomes easier to exercise direct managerial oversight.

    1. ATrue
    2. BFalse
34. 34An [blank_start]ambidextrous[blank_end] organization is a firm with a complex organizational form that is composed of multiple internally inconsistent architectures that can collectively achieve both short-term efficiency and long-term innovation

    1. Aambidextrous
35. 35A development process in which some (or all) of the development activities at least partially overlap. That is, if activity A would precede activity B in a [blank_start]partly parallel development process[blank_end], activity B might commence before activity A is completed.
    
    According to critics, one problem with a [blank_start]sequential development process[blank_end] emerges at the product design stage when R&D engineers fail to communicate directly with manufacturing engineers. As a result, product design proceeds without manufacturing requirements in mind.

    1. Apartly parallel development process
    2. Bsequential development process
    3. Csequential development process
    4. Dpartly parallel development process
36. 36[blank_start]Cross-functional[blank_end] teams enable design, manufacturing, and marketing objectives to be integrated in the new product development process.

    1. ACross-functional
37. 37[blank_start]Diversity[blank_end] can also make it more difficult for teams to develop a common under- standing of the new product development project and can result in lower group cohesion. Teams may need long-term contact and incentives for cooperation to overcome these challenges.

    1. ADiversity
38. 38Attributes of the team leader (seniority, authority, multilingual skills) must match the team type for teams to be most effective.

    1. ATrue
    2. BFalse
39. 39Virtual teams face a distinct set of challenges in promoting participation, cooperation, and trust. As a result, they require special consideration of the selection of team members and the team administration processes.

    1. ATrue
    2. BFalse
40. 40Large teams can create more administrative learning and foster communication, leading to time saving. Additionally, the larger the team, the easier it can be to foster a shared sense of identity among team members.

    1. ATrue
    2. BFalse
41. 41Parallel processing is not an important feature of stage-gate systems. It means that activities are parallel rather than sequential.

    1. ATrue
    2. BFalse
42. 42Stage-gate systems provide a road map for the project leader and team.

    1. ATrue
    2. BFalse
43. 43
    [blank_start]Design Thinking[blank_end] is based on constant reworking and learning.
    
    Starts with well grounded insights through exploration of the world, look at it with open eyes.
    
    Then we form [blank_start]hypotheses[blank_end] regarding what the consumers want, what makes them happy, what are their pains, what do they do?
    
    Then we [blank_start]test[blank_end] the hypotheses with data
    

    1. Ahypotheses
    2. Btest
    3. CDesign Thinking
44. 44It is wrong to believe that the main reason for why most organizations have problem with innovation is because they lack ideas.

    1. ATrue
    2. BFalse
45. 45Innovation can work like a traffic jam, therefore it is important to...

    1. Afocus on brainstorming
    2. Bkill ideas early on
    3. Cselect many ideas
46. 46The stage gate model is extremely influencial. Why?
    
    

    1. AThe gates forces us to kill some ideas early on in the process
    2. BIt starts with a focus on the consumer
    3. CIt is not linear
47. 47The problem with the stage gate model is that...

    1. Ait is too linear
    2. Bit starts with a focus on ideas, not the customer
    3. Cit is technology oriented rather than business case oriented
48. 48Innovations often fail due to problems with teamwork and not the product/market itself.

    1. ATrue
    2. BFalse
49. 49A distinction between risk and uncertainty. Risk can be calculated, the risk of losing a game of dice for example. [blank_start]True uncertainty[blank_end] happens when we do not know the probable outcomes or their probability.

    1. ATrue uncertainty
    2. BRisk aversion
    3. CCognitive bias
50. 50[blank_start]Amplification[blank_end] effects: The tendency for members to be influenced by each other
    
    [blank_start]Polarization[blank_end] effects: The tendency of groups to become even more extreme than its individual members
    
    [blank_start]Common Information[blank_end] Effects: The tendency of members to share information that they have in common instead of the different information they bring
    

    1. AAmplification
    2. BPolarization
    3. CCommon Information
    4. DPolarization
    5. EAmplification
    6. FCommon Information
    7. GCommon Information
    8. HAmplification
    9. IPolarization
51. 51Lightweight teams are appropriate for derivative projects in which low levels of coordination and communication are required.

    1. ATrue
    2. BFalse
52. 52The customization of products and processes to a local market makes them particularly difficult to transfer to divisions serving different markets.
    

    1. ATrue
    2. BFalse
53. 53Theta Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the first step that Theta Cleaning should take?

    1. AIdentification of customer requirements
    2. BEvaluation of the competing products to determine how well they meet customer needs
    3. CIdentification of the engineering attributes that determine the performance of the vacuum cleaner
    4. DDetermination of the relative value or weight of customer requirements
54. 54A sequential process has an early warning system to indicate that planned features are not manufacturable.

    1. ATrue
    2. BFalse
55. 55Social loafing occurs when, as the size of a team decreases, individuals perceive that they will not receive full credit for their contribution to the group effort and so they make a strong commitment to increase their efforts.

    1. ATrue
    2. BFalse
56. 56Using computer-aided design (CAD) to build and test product design increases cycle time.

    1. ATrue
    2. BFalse
57. 57Liam, an employee of Centaurs Inc., is part of a new product development team that operates in a completely different manner from its parent organization. Within the team, there is considerable decentralization of authority and limited bureaucracy. It also has its own unique culture. Liam's team can be most accurately referred to as:
    

    1. Askunk works
    2. Ba mainstream circle
    3. Ca mechanistic team
    4. Dan inorganic group
58. 58Neon Electronics Inc. is an electronics manufacturing company. It has adopted a dominant design for its television audio speakers. Which of the following statements is most likely to be true in this scenario?

    1. ANeon Electronics will have to invest heavily in R&D to come up with new designs for the audio speakers.
    2. BThe design adopted by Neon Electronics will be unpopular among most of the other manufacturers.
    3. CNeon Electronics will have increased opportunities to develop complementary assets.
    4. DNeon Electronics will face decreasing returns to its adoption of the dominant design.
59. 59Which of the following statements is true of a dominant design?
    

    1. AIt is not possible to have legally induced adherence to a dominant design.
    2. BA firm that supports a technology that is chosen as the dominant design is in a poor position to shape the evolution of the industry.
    3. CWhen a firm's technology is locked in as the dominant design of a market, it earns low rewards.
    4. DA firm may find itself locked out of the market if it is unable to adopt the dominant design.
60. 60R&D cannot design products that fit customer requirements unless it receives and attends to input from marketing regarding those requirements.

    1. ATrue
    2. BFalse
61. 61Firms can use strategic alliances to exploit their own capabilities by leveraging them in another firm's development efforts.

    1. ATrue
    2. BFalse
62. 62Solo internal development is, on average, a relatively fast and inexpensive way of developing a technology.

    1. ATrue
    2. BFalse
63. 63Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.

    1. ATrue
    2. BFalse
64. 64Combining the capabilities and other resources of partner firms but not necessarily transferring those resources between the partners is referred to as [blank_start]capability complementation[blank_end]
    

    1. Acapability complementation
65. 65A firm's effectiveness at managing its collaborations will increase with the number of collaborations to which it is committed.

    1. ATrue
    2. BFalse
66. 66[blank_start]Direct network effects[blank_end] occur when the value consumers derive is dependent on the number of other consumers using the product.
    
    [blank_start]Indirect network effects[blank_end], however, occur when the value of products is not so much dependent on the number of consumers of the focal product but on the number of different complementary products available on the same network or platform.
    
    [blank_start]Double-sided network effects[blank_end] for cases when network effects reach across different market populations so that actors in one market chose products based on what products are consumed in a different market
    

    1. ADirect network effects
    2. BIndirect network effects
    3. CDouble-sided network effects
    4. DIndirect network effects
    5. EDirect network effects
    6. FDouble-sided network effects
    7. GDouble-sided network effects
    8. HDirect network effects
    9. IIndirect network effects
67. 67A key proposition of the RBV is that the more that is known or revealed about the technology underlying an innovation, the less likely it is that competitors will imitate the technology.

    1. ATrue
    2. BFalse
68. 68Revealing knowledge increases casual ambiguity for competitors, where casual ambiguity represents an inability to interpret or make sense of the “nature of the causal connections between actions and results”.

    1. ATrue
    2. BFalse
69. 69When competitive intensity is high, it is more likely that firms will experience negative consequences from knowledge revealing in terms of aggressive actions from competitors.

    1. ATrue
    2. BFalse
70. 70Firms with strong complementary assets are more likely to profit from revealing knowledge, because they are less vulnerable to imitation

    1. ATrue
    2. BFalse
71. 71The comparative cost of knowledge revealing, relative to other more structured approaches of accessing and modifying external knowledge (e.g., acquisitions, alliances), is primarily contingent on the level of technological uncertainty facing the firm.

    1. ATrue
    2. BFalse
72. 72Exchange of capabilities across firms in such a manner that partners can internalize the capabilities and use them independently of the particular development project.

    1. ACapability transfer
    2. BCapability complementation
73. 73[blank_start]Contract manufacturing[blank_end] further enables a firm to tap the greater economies of scale and faster response time of a dedicated manufacturer, thereby reducing costs and increasing organizational responsiveness to the environment

    1. AContract manufacturing
74. 74A pejorative term for when an individual or firm misuses patents against other individuals or firms in attempt to extract money from them.

    1. APatent thickets
    2. BPatent trolling
    3. CPatent discrimination
75. 75Proximity and frequent interaction help teams to develop shared norms and a dialect for communicating about a project.

    1. ATrue
    2. BFalse
76. 76Since much innovation arises from experimentation and improvisation, the [blank_start]organic[blank_end] organization structure is typically considered better suited for innovation despite its possible detriment to efficiency.

    1. Aorganic
77. 77A lack of cross-functional communication can lead to a poor fit between product attributes and customer requirements.

    1. ATrue
    2. BFalse
78. 78In the [blank_start]agile development[blank_end] process, a product is divided into many smaller features or functionalities, and these are rapidly created into minimum viable products and presented to the customer for feedback, enabling rapid incremental adaptation.

    1. Aagile development
    2. Bstage-gate
    3. Ccrowdsourcing
    4. Dadditive manufacturing
79. 79A cross-functional team is one that has members of different ethnic backgrounds in a single functional area.

    1. ATrue
    2. BFalse
80. 80Beta Cleaning Equipment Corp. has started the actual design and development of a new floor buffing machine. It has the details of manufacturing, marketing, and operations of the new product as well. According to the stage-gate process, what is the next stage of this project?

    1. AVerification and validation of the new product and its marketing and production
    2. BDevelopment of a business case to justify the project
    3. CLaunch of the product by producing it commercially and selling it
    4. DFormation of a focus group to make sure the product meets user expectations
81. 81Which of the following is a defining characteristic of autonomous teams?

    1. AAutonomous teams do not have a project manager, which leads to constant problems with the coordination of activities.
    2. BAutonomous teams are not held accountable for the success of a project.
    3. CThe degree of cross-functional integration is low in autonomous teams.
    4. DAutonomous teams often do not conform to the operating procedures of the rest of the organization.
82. 82The phenomenon in which firms accumulate knowledge that helps increase their future ability to assimilate information is referred to as learning trajectory.

    1. ATrue
    2. BFalse
83. 83The learning curve indicates that the more units a company produces of an item, the more each unit will cost.

    1. ATrue
    2. BFalse
84. 84A [blank_start]discontinuous[blank_end] technology is a technology that fulfills a similar market need by building on an entirely new knowledge base.

    1. Adiscontinuous
85. 85In some industries, heterogeneous products and production processes are a primary determinant of value, and thus a [blank_start]dominant[blank_end] design is undesirable. For example, art and cuisine may be examples of industries in which there is more pressure to do things differently than to settle upon a standard.

    1. Adominant
86. 86Two of the primary sources of increasing returns to adoption are...

    1. ALearning effects
    2. BNetwork externalities
    3. CThe emergence of complementary assets
87. 87Network externalities arise when complementary goods are important.

    1. ATrue
    2. BFalse
88. 88What kinds of people make good project champions?

    1. ASenior Executives
    2. BHR Managers
    3. CMarketing Specialists
    4. DEngineers
89. 89[blank_start]Autonomous[blank_end] teams often do not conform to the operating procedures of the rest of the organization; instead they are permitted to create their own policies, procedures, and reward systems.
    
    The core group of team members in the [blank_start]heavyweight[blank_end] team is often dedicated full-time to the project. This combination of factors helps ensure that the team has strong cross-functional coordination and communication, and that team members are significantly committed to the development project.
    
    

    1. AAutonomous
    2. Bheavyweight
90. 90The first design based on the initial technological discontinuity rarely becomes the dominant design.

    1. ATrue
    2. BFalse

Description

Quiz on Innovation Management, created by David Persson on 16/12/2021.

Author

David Persson

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