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mon thi 20/1 2

Total questions: 136

Worksheet time: 1hrs 8mins

Name
Class
Date
1.

Innovation is defined as the process of creating value from what?

a)

Patents

b)

R&D Spending

c)

Inventions

d)

Ideas

2.

What did Thomas Edison appreciate as the real challenge in innovation, beyond invention?

a)

Securing legal protection

b)

Making the ideas work technically and commercially (exploitation)

c)

Building an organization structure

d)
  1. Finding new customers

3.

Which dimension of the 4Ps model refers to changes in the things (products/services) that an organization offers?

a)

Process

b)

Position

c)

Paradigm

d)

Product

4.

Changes in the ways offerings are created and delivered (e.g., implementing lean manufacturing) are categorized as which type of innovation?

a)

Product innovation

b)

Position innovation

c)

Paradigm innovation

d)

Process innovation

5.

The shift by Rolls-Royce from selling aero engines to offering "power by the hour" represents a change in the underlying mental models, known as:

a)

Process innovation

b)

Position innovation

c)

Paradigm innovation

d)

Process innovation

6.

The development of the Tata Nano, aimed at the emerging but relatively poor Indian market, is an example of which type of innovation?

a)

Product innovation

b)

Process innovation

c)

Position innovation (Addressing underserved markets)

d)

Paradigm innovation

7.

Innovation that involves minor, continuous improvements aimed at "doing what we do but better" is known as

a)

Radical inoovaiton

b)

Architectural innovation

c)

Breakthrough innovation

d)

Incremental innovaiton

8.

Economists generally agree that innovation accounts for a sizeable proportion of:

a)

Cost reduction

b)

Standardization

c)

Economic growth

d)

Regulatory compliance

9.

The observation that productivity improves with increases in the scale of production, due to continuous incremental problem-solving, is described by the:

a)

Dynamic Capability

b)

Learning curve effect

c)

Strategic analysis

d)

Product life cycle

10.

The concept that allows many variants and generations of products to be built upon a strong basic design (e.g., Boeing 737) is known as:

a)

Component innovation

b)

Architectural innovation

c)

Platform innovation (Robust design)

d)

Incremental innovation

11.

The emergence of large-scale social networks and parallel world communities (like Facebook) poses challenges in market research approaches, illustrating which context change?

a)

Global distribution of knowledge production

b)

Growing concern with sustainability issues

c)

Development of technological infrastructure

d)
  1. Market virtualization

12.

The context change characterized by new players, especially in emerging market fields like the BRIC nations, is called

a)

Market virtualization

b)

Market fragmentation

c)

Global distribution of knowledge production

d)

Rise of active users

13.

What is one indicative example of the growing concern with sustainability issues in the context of innovation?

a)

Market virtualization

b)

Increasing regulation on areas like emissions and carbon footprint

c)

Acceleration of knowledge production

d)
  1. The rise of active users in open source communities

14.

What type of knowledge, in a knowledge-based economy, includes patents, brands, business systems, and customer databases?

a)

Human resources

b)

Physical resources

c)

Intellectual capital

d)

Financial resources

15.

Innovation is not a single event; it is an extended process of picking up on ideas for change and turning them into effective reality, involving stages of searching, selecting, implementing, and:

a)

Planning

b)

Organizing

c)

Standarizing

d)

Capturing value

16.

Which phase of the innovation process involves the strategic choice—deciding out of all the things an organization could do, what it will do—and why?

a)

Search

b)

Select

c)

Implement

d)

Capture value

17.

The Implementation phase of innovation is primarily concerned with converting ideas into reality, which requires mobilizing knowledge against a background of:

a)

Certainty

b)

Standardization

c)

Uncertainty

d)

Strong competitor behaviour

18.

For a start-up entrepreneur, the 'search' stage is often called:

a)

Idea generation

b)

Market analysis

c)

Opportunity recognition

d)

Project execution

19.

When a new product development team in an established company secures resources, they must often pitch for backing against:

a)

External competitors

b)

Suppliers

c)

Other competing projects from different teams

d)

Regulators

20.

In the Capture Value phase, one of the main goals is to protect the gains from:

a)

New regulations

b)

Market shifts

c)

Appropriation by others

d)

Internal change

21.

The ability to repeat innovative success relies on finding behavior patterns that work and reinforcing them until they become "the way we do things around here," known as:

a)

Dynamic capability

b)

Core competences

c)

Strategic direction

d)

Routines

22.

The need to update and change organizational routines in a constantly changing environment is known as:

a)

Organizational Inertia

b)

Strategic Choice

c)

Dynamic capability

d)

Incremental change

23.

16.  capability D. Incremental Change

Which of the following is NOT one of the three key questions asked when assessing an organization's Dynamic Capability concerning its current routines?

a)

Which should we do more of?

b)

Which should we do less of, or even stop?

c)

Which resources should we acquire externally?

d)

Which new things do we need to learn to do?

24.

The core innovation process requires Pro-active links across boundaries inside the organization and to external agencies, such as:

a)

A. Lawyers and accountants only

b)

B. Suppliers, customers, sources of finance, and skilled resources

c)

C. R&D labs only

d)

D. Competitors and substitutes

25.

For a public service team in a hospital, the search for innovation is typically focused on finding:

a)

A. New products to sell

b)

B. More efficient ways of delivering the service under resource constraints

c)

C. New sources of external finance

d)

16.  D. Radical technical breakthroughs

26.

When a social entrepreneur captures value, it is measured in terms of social improvements as well as:

a)

COmmercial profits

b)

Market share increase

c)

Patent protection

d)

Learning

27.

The challenge of developing something that may never have been done before in the Implementation phase distinguishes innovation from:

a)

Strategic planning

b)

Conventional project management

c)

Idea generation

d)

Financial analysis

28.

An Innovative Organization is defined as one where the structure and climate enables people to deploy their creativity and:

a)

Adhere to strict rules

b)

Focus solely on R&D

c)

Share their knowledge to bring about change

d)

Centralize decision-making

29.

The management ability to manage innovation successfully relies on having effective enabling mechanisms for the core process and:

a)

Strong patents

b)

High fixed costs

c)

Strategic direction and commitment

d)

Focusing only on incremental change

30.

Strategy is defined as the direction and scope of an organization over the long term, which achieves competitive advantage through its configuration of resources and:

a)

Stakeholder expectations

b)

Market share

c)

Competences

d)

Fixed costs

31.

The three core elements of innovation strategy formulation are Strategic Analysis, Strategic Selection, and:

a)

Strategic Alignment

b)

Strategic Review

c)

Strategic implementation

d)

Strategic Planning

32.

Which core element of strategy formulation involves exploring the macro-environment, industry environment, and strategic capability to determine "What could we do?"?

a)

Strategic Selection

b)

Strategic Implementation

c)

Strategic Analysis

d)

Strategic Alignment

33.

The Strategic Capability element of strategic analysis focuses on the organization's

a)

Political and legal forces

b)

Competitors and customers

c)

Resources and competences (strengths and weaknesses)

d)

Barriers to entry

34.

When analyzing the Industry Environment using Porter's Five Forces, key questions focus on competitive forces, the relative power of players, and:

a)

PESTEL factors

b)

Organizational routines

c)

Barriers to entry and threat from substitutes

d)
  1. The organization's values

35.

Which strategic advantage mechanism involves offering something in ways others cannot match, such as faster, lower cost, or more customized production?

a)

Novelty in product or service

b)

Novelty in process

c)

Complexity

d)

Legal protection

36.

The strategic choice where firms aim at being first to market based on technological leadership is known as:

a)

Innovation Followership

b)

Incremental Strategy

c)

Innovation Leadership

d)

Rationalist Strategy

37.

Innovation Followership (Fast Second) requires a strong commitment to:

a)

Pioneering radical new products

b)

Competitor analysis, intelligence, and reverse engineering

c)

High R&D investment

d)

Creating new rules of the game

38.

Resources that critically underpin competitive advantage and that others cannot easily imitate or obtain (like a long-established brand) are known as:

a)

Threshold Capabilities

b)

Intangible Resources

c)

Unique Resources

d)

Core Competences

39.

Competences are defined as the skills and abilities by which resources are deployed effectively through an organization’s:

a)

Tangible assets only

b)

Patent portfolio

c)

Activities and processes

d)

Financial capital

40.

What are core competencies?

a)

Unique resources that underpin competitive advantage

b)

Skills and abilities deployed to achieve competitive advantage in ways that others cannot imitate

c)

Costs that remain constant regardless of production

d)

Only technological path selection

41.

Which strategic advantage mechanism relies on establishing a strong basic platform or family that allows many variants and generations to be built upon it?

a)

Timing

b)

Complexity

c)

Robust design

d)

Rewriting the rules

42.

The strategic advantage of Rewriting the rules involves offering something that:

a)

Provides legal protection

b)

Is difficult for others to master

c)

Represents a completely new concept and makes the old ones redundant

d)

Is based purely on low price

43.

The third stage in innovation strategy development, planning to make innovation happen (Strategic Implementation), involves using tools like FMEA and:

a)

PEST analysis

b)

SWOT analysis

c)

Break-Even Analysis

d)

Potential problem analysis / Scenarios

44.

Policy deployment is a mechanism for communicating strategy, primarily aimed at

a)

Securing venture capital

b)

Centralizing R&D decisions

c)

Breaking top-level objectives down into manageable targets

d)

Analyzing competitor behavior

45.

The Discounted Cash Flow (DCF) method for evaluating projects is based on the concept of:

a)

Break-Even Volume

b)

Fixed cost recovery

c)

Time value (present value) of money

d)

Return on investment

46.

The calculation of Break-Even Volume aims to find the level of output at which the total after-tax cash covers the:

a)

Variable costs only

b)

Total costs (fixed and variable costs)

c)

Fixed costs only

d)

Future value of money

47.

In the Break-Even Volume formula Q = F/(P - V), what does (P - V) represent?

a)

A. Total fixed cost

b)

Total revenue

c)

Profits (The contribution of each unit to covering fixed costs)

d)

Variable cost

48.

Tangible resources include physical assets of an organization such as plant, people (as a headcount), and:

a)

Patents

b)

Reputation

c)

Finance (capital, cash)

d)

Intellectual property

49.

The characteristic that innovation strategy is not a detailed plan but a flexible learning process is essential because innovation involves:

a)

Low cost

b)

Standardization

c)

Uncertainty and risk

d)

Strong legal protection

50.

The core role for leadership in innovation strategy is to provide vision, direction, and sometimes to:

a)

Centralize all decision-making

b)

Eliminate all R&D risk

c)

Stretch the organization in terms of its goals

d)

Focus solely on incremental improvements

51.

To be considered strategic, a capability must be honed to a user need, unique, and difficult to:

a)

Implement

b)

Replicate

c)

Ana;yze

d)

Fund

52.

The strategic advantage of Timing focuses on which specific benefit?

a)

Reducing production complexity

b)

Securing strong legal protection

c)

First-mover advantage in new product fields

d)
  1. Imitating competitors (Fast Follower)

53.

In the context of Dynamic Capability, the "set of routines which define ‘the way we do things around here’" relates to which component?

a)

Competitive and national positions

b)

Technological paths

c)

Organizational and managerial processes

d)
  1. Strategic implementation

54.

The strategic advantage of Legal Protection of Intellectual Property means offering something which others cannot do unless they:

a)

Achieve higher complexity

b)

Follow the learning curve

c)

Pay a license or other fee

d)

Build a strong brand

55.

Why does innovation strategy need to be shared and communicated throughout the organization?

a)

To enforce strict centralization

b)

To reduce external uncertainty

c)

So that everyone understands and can contribute

d)

To secure financial resources

56.

Which key question about managing innovation asks how the organization manages selection and resource acquisition?

a)

Do we search as well as we could?

b)

How well do we manage the selection and resource acquisition process?

c)

How well do we implement?

d)

Do we learn from experience?

57.

Which type of resource includes the mix, skills, and knowledge of employees?

a)

Financial resources

b)

Physical resources

c)

Intellectual capital

d)

Human resources

58.

The process of developing a new product from the initial "gleam in the eye" to a fully-developed reality is part of which innovation management ability

a)

Searching

b)

Selecting

c)

Developing (Implementation)

d)

Capturing value

59.

The core innovation process involves stages of searching, selecting, implementing (including developing and diffusion), and:

a)

Planning

b)

Organizing

c)

Capturing value

d)

Standardizing

60.

A wide range of methods and techniques are available for identifying potential innovations in the external environment. Some of these are more suited to radical innovations than more routine product development. Which of the following techniques is least effective for identifying radical innovations:

a)

Lead user involvement

b)

Market and customer segmentation

c)

Focus groups

d)

Scenario planning

61.

Many factors contribute to the success or failure of a new product. One factor found to make a difference is:

a)

High expenditure on research and development

b)

Significant customer involvement

c)

Use of external technology

d)

Strong project management

62.

What of the following elements would you not expect to find in a stage-gate process for new product development?

a)

Clear criteria for passing through a gate

b)

A specific number of stages and gates for different project types

c)

Fewer stages and gates for more radical or risky projects

d)

Fewer stages and gates for more incremental or lower risk projects

63.

Which of the following is not a fundamental difference between manufacturing and service operations?

a)

Perceptions of performance and quality are more important in services.

b)

Many services demand high levels of contact between the operations and ultimate customer.

c)

Services are associated with higher levels of customer loyalty.

d)

The inability to store services can create problems with capacity management.

64.

The service-process matrix provides a useful way of identifying the key management challenges of an operation. The matrix classifies operations in terms of two dimensions. Which of the following is not true?

a)

Service shops have high customer interaction and high labor intensity.

b)

Service factories have low customer interaction and low labor intensity.

c)

Mass services have low customer interaction, but high labor intensity.

d)

Professional services have high customer interaction and high labor intensity.

65.

Which of the following factors generally does not positively influence new product success?

a)

Pre-development process

b)

Marketing synergy

c)

Early concept definition

d)

Strong project management

66.

Gary Lynn and Richard Reilly have tried to identify in a systematic way the most common factors that contribute to successful product development, focusing on what they call “blockbuster” products. Which of the following is not a predictor of success?

a)

Improvisation

b)

First to market

c)

Clear and stable vision

d)

Collaboration under pressure

67.

Studies of new product development suggest four main types of team structure. Which of the following is not a valid description?

a)

Functional structure—a traditional hierarchical structure where communication between functional areas is largely handled by function managers and according to standard and codified procedures.

b)

Heavyweight product manager structure—essentially a matrix structure led by a product (project) manager with extensive influence over the functional personnel involved but also in strategic directions of the contributing areas critical to the project. By its nature this structure carries considerable organizational authority.

c)

Lightweight product manager structure—a project-based structure but where a project manager provides an overarching functional expertise.

d)

Project execution teams—a full-time project team where functional staff leave their areas to work on the project, under project leader direction.

68.

1.      Examination of the actual ways of organizing new product and service development suggests different organizational configurations provide several common elements. Which of these is generally not such an organizing factor?

a)

Shared knowledge and/or technical information base

b)

Control mechanisms, either impersonal or interpersonal

c)

Resource allocation and performance measurement

d)

External linkages with customers, partners or suppliers

69.

A simplified four-stage model is sufficient to discriminate between the various factors that must be managed at different stages of development. Which of the following is not normally a stage in this process?

a)

Concept generation—identifying the opportunities for new products and services

b)

Product development—translating the selected concepts into a physical product

c)

Project assessment and selection—screening and choosing projects that satisfy certain criteria

d)

Production planning—manufacturing design and prototyping

70.

Concept development can be supported by a number of tools and methods. Which of the following is not normally used to help concept development?

a)

Quality Function Deployment (QFD)

b)

Customer focus groups

c)

Lead users

d)

Latent needs analysis

71.

Which of the following would not normally be included in Quality Function Deployment (QFD)?

a)

Choose appropriate units of measurement and determine target values based on customer requirements and competitor benchmarks

b)

Establish the relationship between the customer requirements and technical product characteristics

c)

Market trials and prototyping

d)

Identify customer requirements, primary and secondary, and any major dislikes

72.

Which of the following techniques is the least popular?

a)

Prototyping

b)

Lead users

c)

Segmentation

d)

Experimentation

73.

Research confirms that the most effective organization of development depends on the novelty of the project. Which of the following is NOT true?

a)

Less novel projects have a greater involvement of lead users.

b)

Heavyweight project managers and cross-functional teams are a more effective combination for high novelty projects.

c)

Customers are more likely to be involved in the development and commercialization of novel products and services.

d)

More novel projects involve more market experimentation and external experts.

74.

Potential projects can be assessed by a number of criteria. Which of the following is not commonly used?

a)

Core competencies

b)

Risk of technical failure

c)

Risk of market failure

d)

Strategic clusters

75.

The focus of innovation for sustainability is different to that of innovation for competitiveness, except for:

a)

Networks of stakeholders, rather than firms

b)

Social and political imperatives, not only markets

c)

Conservation, rather than change

d)

Evolution of technological regimes, not management of technology

76.

     Innovation can contribute to sustainability in a number of ways. Which of the following is not an example of a positive contribution?

a)

Faster replacement of obsolete products

b)

Development of more efficient processes

c)

Creation of new systems and services

d)

Generation of more technological alternatives

77.

     The likelihood of the development and adoption of alternative technologies depends on the perceptions of potential users. Which of the following is generally not true?

a)

Buyers' perceptions of differences between alternative technologies influence adoption.

b)

The perceived cost of switching between alternative technologies influences adoption.

c)

The perceived rate of technological change influences the adoption.

d)

Buyers' perceptions of the total benefits influence adoption.

78.

    Identifying novel niches is more difficult than conventional marketing or new product development because:

a)

Novel niches demand more radical innovation

b)

Segmentation provides limited insights.

c)

Novel niches require new knowledge.

d)

Consumer markets are different to business markets.

79.

Innovation in socio-technical systems has a number of distinctive characteristics that make it impossible to manage. Which of the following is not a characteristic of innovation in such systems?

a)

Users' needs are less important than technology trends.

b)

Interfaces and interactions are difficult to anticipate.

c)

Adoption and diffusion is lengthy and uncertain.

d)

Technology and markets co-evolve.

80.

   Bundling component innovations into new integrated systems or services has many advantages, but also some drawbacks. Which of the following is not an advantage of integrated systems or service innovations?

a)

Allows better management of interfaces

b)

Can help to optimize overall performance

c)

Likely to appeal to sophisticated customers

d)

Higher added value of developers

81.

    The most effective relationship between developers and users depends on a number of factors, including the diversity of potential applications and users. Which of the following statements is not true?

a)

When there are few applications and few users, negotiation is desirable.

b)

When there are few applications, but many potential users, careful segmentation is necessary.

c)

When there are many applications, but few users, customization is possible.

d)

When there are many applications and many users, multiple offerings must be developed.

82.

Lead users have a number of important defining characteristics. Which of the following is NOT typical of a lead user?

a)

Technologically more advanced than competitors

b)

Recognize future market requirements early

c)

Perceived to be innovative by their peers

d)

Positioned to benefit more from innovations

83.

      The concept of an innovation network is used widely, but can be difficult to define or operationalize. Which of the following traits would you not expect an innovation network to have?

a)

Evolve over time, path-dependent.

b)

Include many actors and stakeholders.

c)

Involve complex interactions and relations.

d)

Optimal organization for innovation.

84.

Which characteristics are not positively associated with the rapid diffusion and widespread adoption of an innovation?

a)

Observability

b)

Complexity

c)

Trialability

d)

Compatibility

85.

    The adoption of an innovation depends on its relative advantage. Which of the following is not generally considered to be a relative advantage?

a)

High attribute gap between the innovation and expectations

b)

High degree of primary benefits

c)

High degree of secondary attributes

d)

High degree of non-economic factors

86.

  Observability and trialability are normally positively associated with diffusion and adoption, but in what circumstances might these limit diffusion and adoption?

a)

Promote imitation

b)

Improve prototyping

c)

Reveal shortcomings

d)

Provide feedback

87.

    The most common model of the process of the diffusion of innovation is the epidemic or “S-curve” model. This is useful, but is based on a number of unrealistic assumptions. Which of these is not an assumption of the basic epidemic model?

a)

The population consists of two different groups, adopters and imitators.

b)

The population is homogeneous.

c)

The population has perfect knowledge of the innovation.

d)

Information is spread by contact and observation.

88.

     To be effective, scenario planning must satisfy a number of conditions. Which of the following is not essential?

a)

Compelling problems

b)

Inclusive pảticipation

c)

MNormative goals

d)

Plausible outcomes

89.

   The design of a Delphi study for forecasting the future should follow all but which of the following guidelines?

a)

Identify a broad community of experts

b)

Consist of a number of iterations

c)

Feature interviews and workshops

d)

Include questions of timing and probability

90.

The triple bottom line is:

a)

markings on a ship to show how heavily laden it is

b)

a company reporting framework designed to take into account not just financial outcomes but also environmental and social performance

c)

an accounting system suitable for joint ventures between firms

d)

a bookkeeping convention to minimize accounting mistakes

91.

Which of these is NOT a difference between social entrepreneurs and commercial entrepreneurs?

a)

Social entrepreneurs are less concerned with independence and wealth, and more on social means and ends.

b)

Social entrepreneurs are older than commercial entrepreneurs.

c)

Social entrepreneurs place less emphasis on short-term growth and long-term harvesting of the venture, and more concern on long-term change and enduring heritage

d)

Social entrepreneurs place less reliance on the firm and management team to execute the venture, and greater reliance on a network of stakeholders and resources to develop and deliver change.

92.

hich of the following statements about the 'bottom of the pyramid' market is not open to challenge?

a)

The poor - 4 billion of them - earn less than $2/day

b)

The poor have no purchasing power and do not represent a viable market

c)

The poor are not brand-conscious

d)

The poor are unable to use and not interested in advanced technology

93.

Which of the following is NOT a question for managing social entrepreneurship?

a)

How do we find opportunities which deliver social as well as economic benefits?

b)

How do we identify and engage a wide range of stakeholders – and understand and meet their very diverse expectations?

c)

How do we mobilise resources across networks, how do we build coalitions of support for socially valuable ideas?

d)

How do we patent and exploit emerging ideas?

94.

Which of the following would NOT be considered a social entrepreneur?

a)

Florence Nightingale

b)

Muhammed Yunus, founder of the Grameen Bank

c)

Kenneth Lay, founder of Enron

d)

Trevor Bayliss, inventor of the wind-up radio

95.

Which of the following would NOT qualify as a discontinuous innovation?

a)

Voice over Internet protocol (VOIP) telephony

b)

Gene therapies for cancer treatment

c)

Flat bed sleeping in business class airline cabins

d)

The Internet

96.

Which of the following is the discontinuous innovation?

a)

Moving from four to six cylinder car engines

b)

Moving from CD to DVD music and entertainment systems

c)

Moving from small shops to self-service supermarkets

d)

Moving from sugar to artificial sweeteners in food products

97.

Which of these innovations would not qualify as a dominant design?

a)

The two-wheeled diamond frame bicycle

b)

Direct online insurance via the Internet

c)

The petrol driven internal combustion engine

d)

The 5 string bass guitar

98.

Which of the following is not one of the main factors influencing the decision where to locate R&D globally?

a)

The importance of external sources of technical and market knowledge, e.g. sources of technology, suppliers, and customers

b)

The quality of the science and technology base

c)

The importance and costs of internal transactions, e.g. between engineering and production

d)

The cost and disruption of relocating key personnel to the chosen site

99.

. Firms have many reasons for monitoring and learning from the development of technological, production and organizational competencies of systems of innovation in other countries, and especially from those that are growing and strong. Which of the following is not a significant reason?

a)

Understanding and imitating foreign systems of innovation

b)

Firms can benefit more specifically from the technology generated in foreign systems of innovation

c)

Potential sources of improvement in the corporate management of innovation

d)

Identify and plan for firms with a potential capacity to compete through innovation

100.

Technological leadership in firms does not necessarily translate itself into economic benefits. The capacity of the firm to appropriate the benefits of its investment in technology depends on its position. Which of the following is not relevant?

a)

Innovation "leadership"-where firms aim at being first to market, based on technological leadership

b)

Complementary assets or capabilities in marketing and distribution

c)

Capacity to defend its advantage against imitators, for example, through standards or intellectual property

d)

The learning curve in production generates both lower costs, and a particular and powerful form of accumulated and largely tacit knowledge

101.

Firms in emerging economies may pursue different routes to upgrading through innovation. Which of the following is not a common pathway?

a)

Capability upgrading - improving the range of functions undertaken, or changing the mix of functions, for example, production versus development or marketing

b)

Process upgrading - incremental process improvements to adapt to local inputs, reduce costs or to improve quality

c)

Competitiveness upgrading-adopting best-practice methods from developed economies

d)

Inter-sectoral upgrading— moving to different sectors, for example, to those with higher value-added

102.

Firms in emerging economies may pursue different routes to upgrading through innovation. Which of the following is not a common pathway?

a)

Capability upgrading - improving the range of functions undertaken, or changing the mix of functions, for example, production versus development or marketing

b)

Process upgrading - incremental process improvements to adapt to local inputs, reduce costs or to improve quality

c)

Competitiveness upgrading-adopting best-practice methods from developed economies

d)

Inter-sectoral upgrading— moving to different sectors, for example, to those with higher value-added

103.

Prahalad and Hamel argue that the capacity to open new product markets requires distinctive core competencies, coupled with methods of corporate organization and evaluation that explicitly recognize the importance of these competencies. Which of the following is not true of core competencies?

a)

Contribute to more than one core product, and to more than one business unit.

b)

Suggests that large and multidivisional firms should be viewed as a collection of strategic business units.

c)

Require focus: Companies are likely to lead in more than five or six core competencies

d)

Are supported by organizational competencies such communication, involvement, and a commitment to working across organizational boundaries.

104.

David Teece and Gary Pisano integrate the various dimensions of innovation strategy into what they call the "dynamic capabilities" approach. This emphasizes the need to:

a)

Manage strategically to adapt and re-configure capabilities

b)

Make significant investments in emerging technological trajectories

c)

Adopt a strategic position as market leader

d)

Strategically anticipate future technologies and markets

105.

The notions of core competence and dynamic capabilities are useful as they emphasize the importance of developing firm-level resources. However, there are a number of limitations to these approaches. Which of the following is not a significant limitation of the concepts?

a)

Industries face differing potentials for technology-based diversification

b)

Recommendations that firms should concentrate resources on a few distinctive world-beating technological competencies are misleading

c)

Emphasizes the difficulty of capturing and transferring knowledge due to its tacit nature and contextspecificity

d)

More general enabling competencies for the coordination of changes in supply, production and distribution systems are necessary

106.

A strategic goal is to get the right balance between exploitation of existing competencies and the exploitation and development of new competencies. Which of the following is not a critical issue in this respect?

a)

The breadth and limits of management cognition that influence decision-making

b)

The skills and experience of employees and other human capital

c)

The internal and external relationships that influence access to information and knowledge

d)

The vision, control and power of senior managers

107.

. There is no widely accepted definition or method of measurement of competencies. Which of the following statements is not true?

a)

Functional measures might include capabilities in design, development or production

b)

Need to identify the range of disciplines or fields that contribute to a technology.

c)

Need to be based on specific strategic technological targets.

d)

Need to identify the new competencies that must be developed

108.

Capabilities are central to developing an innovation strategy because they are:

a)

Assets owned and controlled by the company

b)

Firm‐specific, and difficult to imitate

c)

Tangible, like buildings and stock

d)

Protected legal entities, like patents

109.

Which of the following is NOT a positional capability?

a)

Supply and distribution networks

b)

Corporate and personal networks

c)

Employee know‐how and skills

d)

Reputation of the company

110.

The sustainability and protection of resources depends upon:

a)

How vulnerable the resources are to imitation or substitution

b)

The price of the resources in the market

c)

How much formal intellectual property are, e.g. patents

d)

Investment in research and development and technology

111.

A Blue Ocean strategy should focus on:

a)

Lower cost offerings than the competition

b)

Higher quality offerings than the competition

c)

Differentiating to avoid direct competition

d)

Better products than the competition

112.

Which of the following factors does NOT typically influence a firm's capacity to benefit commercially from its technology?

a)

First to market

b)

Accumulated tacit knowledge

c)

Complementary assets

d)

Standards or strength of patent protection

113.

At each of the different stages of developing a new venture there are different significant challenges to overcome in order to make a successful transition to the next stage, what the researchers call "critical junctures". Which of the following is not normally such a critical transition?

a)

Entrepreneurial commitment - persistence that binds the venture champion to the emerging business venture

b)

Venture credibility - of the venture team, key customers and other social capital and relationships.

c)

Resource availability - access to the necessary financial resources.

d)

Opportunity recognition - the ability to connect know-how to a commercial application.

114.

Many dimensions of climate have been shown to influence innovation and entrepreneurship. Which of the following is not associated with innovation and entrepreneurship?

a)

Time and space for generating new ideas

b)

Challenge and involvement to stimulate innovation.

c)

Complete trust and lack of conflict.

d)

Support for risk-taking and mistakes.

115.

The Kirton Adapter-Innovator (KAI) scale is a psycho-metric approach for assessing the creativity of individuals. By a series of questions it seeks to identify an individual's attitudes towards originality, attention to detail and following rules. It seeks to differentiate "adaptive" from "innovative" styles. Which of the following is not true?

a)

Adaptors focus on 'doing better'

b)

Adaptors create stretch solutions

c)

Innovators create more acceptable solutions.

d)

Innovators reconstruct problems and assumptions.

116.

Nelson & Winter develop the notion of organizational routines to help explain the behavior and evolution of organizations. Which of the following is not a characteristic of routines:

a)

Regular and predictable

b)

Collective, social and tacit

c)

Easily observable and measured

d)

Guide cognition, behavior and performance

117.

The characteristics of a creative mind include:

a)

Highly selective to data

b)

A fast, patterned response

c)

Willingness to suspend judgment

d)

Strong technical problem-solving capability

118.

Cognitive maps are a useful methods to encourage creativity and promote innovation. Which of the following is not a benefit of using cognitive maps?

a)

Help to build consensus

b)

Make assumptions explicit

c)

Involve different stakeholders

119.

Three different aspects interact to promote or constrain creativity and innovation. Which of these is not a typical example?

a)

Personality and cognitive style

b)

Process of creative problem-solving

c)

Tools and techniques for creativity.

d)

Climate and culture.

120.

The concept of "organizational slack" was developed to identify the difference between resources currently needed and the total resources available to an organization. Which of the following is not a characteristic of slack?

a)

Organizational slack represents a static inefficiency.

b)

Tends to optimize performance and increase efficiency

c)

Organizational slack can act as a dynamic shock absorber

d)

Tends to be self-reinforcing due to positive feedback

121.

A number of models of the creative process can be helpful to those who need to engage in innovation and entrepreneurship. One proven and practical process for challenging the way we perceive things includes three main stages. Which of these is not a stage in the process?

a)

Raising the resources

b)

Understanding the opportunity

c)

Generating ideas

d)

Planning for action

122.

Organizational culture is important for innovation, but the concept of organizational climate is preferable. Which of the following is not true?

a)

Climate is easier to assess and measure

b)

Culture cannot be directly observed

c)

Culture is more difficult to influence or change

d)

Climate explains more of the variance in performance

123.

Schein identifies a number of surface manifestations of organizational culture, most of which influence the degree and direction of innovation. Which of the following is not such a manifestation of culture?

a)

Bulidings, facilities and tools

b)

Rites and rituals

c)

Heros and role models

d)

Products and services

124.

The successful framing of problems or opportunities demands a number of disciplines. Which of the following is not desirable?

a)

Consider many, varied alternatives

b)

Prioritize implementable solutions

c)

Craft specific but open problem statements

d)

Ignore limiting or restrictive criteria

125.

The cognitive abilities necessary for creativy include all but which of these charactersitics?

a)

Implementation and improvisation.

b)

Intelligence to interpret and manipulate informaton.

c)

Attention and perception to acquire and assess knowledge

d)

Wisdom to select and filter information

126.

Venture capitalists assess business plans in different ways. However, which of the following would not be expected to encourage funding?

a)

Personality and experience of the entrepreneurs.

b)

Market and competitior assessment.

c)

High-technology product or service.

d)

Financial projections

127.

De Bono introduced the term lateral thinking to describe alternatives to logical thought, and has a long and distinguished career promoting applied creative thinking. Lateral thinking can be helped by a number of methods and techniques. Which of the following is not an example?

a)

Distort the relationships or cause and effect

b)

Use brainstorming

c)

Remove or suspend an assumption or goal

d)

Use a metaphor or character.

128.

"Knowledge push" refers to:

a)

A software tool for accelerating product development

b)

To earn innovation opportunities from the results of knowledge production for example

c)

A government policy approach to fund high tech cities

d)

A venture capital agency

129.

Innovation at the base of the pyramid refers to:

a)

Construction innovation approaches to new structures

b)

Exploration of innovation opportunities for products/services in high volume but low income markets

c)

Segmentation of consumer product marketing innovation

130.

"Reverse innovation" refers to

a)

A novel approach to project management

b)

The condition where innovations developed for a different market (for example, in low income emerging countries) migrate to an established market where its features are valued

c)

A creative thinking technique

131.

"Jugaad innovation" refers to:

a)

A Bollywood filmAn approach to innovation that emphasizes improvisation and simple solutions

b)

An approach to innovation that emphasizes improvisation and simple solutions

c)

A project management tool for accelerating product development

132.

"Recombinant innovation" is:

a)

A technique in genetic engineering

b)

A cross-functional team approach to new product development

c)

Applying innovation ideas from one sector in another

133.

"Absorptive capacity" refers to:

a)

Performance measurement of sponges and tissue paper

b)

The ability of an organization to recognize, acquire, assimilate and use new knowledge from external sources

c)

The knowledge base of the enterprise, measured in terms of the number of university degrees of its staff

134.

"Sending out scouts" is:

a)

A technique to enhance peripheral search for innovation opportunities

b)

A strategy used in military maneuvers

c)

A market research tool based on working with community groups

135.

"Ethnography" refers to

a)

A study of handwriting

b)

A tool (originally derived from anthropology) to understand user needs by observing closely their behavior in context

c)

A market research tool based on questionnaire surveys

136.

Which of the following is not the result of knowledge push innovation?

a)

Polyethylene plastics

b)

Float glass manufacture

c)

ARM's chipset for mobile phones

d)

Haagen-Dazs ice cream