Question 1

Innovation is the process of developing and often commercialising new products, services, and processes.

Accepted Answer

This is the definition of innovation.

Question 2

R&D enables firms to improve their ability to assimilate knowledge from outside.

Accepted Answer

Firms develop the ability to internalize knowledge created by other firms and organisations.

Question 3

During the concetualization phase of innovation the emphasis is on the design of possible versions of the product.

Accepted Answer

The statement is false because in the conceptualization phase the emphasis is on the development of initial concept of project.

Question 4

One of the most common misconceptions of innovation is that it does not go hand in hand with conformity and existing organisational rules.

Accepted Answer

Conformity is required to overcome various constraints within the organisation and to bring ideas to fruitful conclusion.

Question 5

Innovation in an organisation is nurtured by establishing reliable and systematic processes and practices to nurture an innovative culturewithin the entire organisation.

Accepted Answer

Nurturing innovation in an organisation requires different but complementary approaches

Question 6

The purpose of process innovation is to lower costs, increase sales and profits.

Accepted Answer

True, see Figure 13.2.

Question 7

Foreign market operating strategies entail decisions on market selection, entry mode and timing

Accepted Answer

True because such decisions involve the where (market selection), how (entry mode) and when (timing) elements in a foreign market operating strategy

Question 8

Firms need to locate R&D functions in their home countries to increase the economic benefits to the frim

Accepted Answer

That is conventional wisdom, but strategy in the global factory system increasingly focuses on R&D globalisation.

Question 9

Globalised R&D units function best when established as separate from the focal firm.

Accepted Answer

It is false because geographically disbursed R&D units need to be integrated in the international operations of the global factory to create a cohesive research community.

Question 10

Tacit knowledge can be expressed, codified, and articulated.

Accepted Answer

Tacit knowledge is embedded in the minds of individuals and cannot be easily transferred from one individual to another.

Question 11

Factors that infleunce the economic benefits of R&D are _______ Please select all that apply.

Accepted Answer

All answers are correct. See figure 13.3 on p.461.

Question 12

Knowledge transfer and the global factory framework may promote _______ Please select all that apply.

Accepted Answer

All options are correct.

Question 13

One of the benefits of open innovation is _______ Please select all that apply.

Accepted Answer

The correct response is d) experimenting with new ideas can result in new and unexpected technological combinations.

Question 14

_______ is one of the main processes of knowledge accumulation. Please select all that apply.

Accepted Answer

The correct response is b), retention is high when subsidiaries minimize knowledge leakage.

Question 15

Process innovation refers to _______ Please select all that apply.

Accepted Answer

The correct answer is b) because improved production method is a process improvement while the other options refer to new products or services.

Question 16

A key characteristic of open innovation is _______

Accepted Answer

The correct answer is c) as important resources often extend beyond the boundaries of the MNE and accessing resources outside the firm for example through licensing.

Question 17

In very competitive and dynamic markets R&D may be a _______

Accepted Answer

Not all firms benefit from innovation and innovation does not always create a competitive advantage.

Question 18

The fundamental challenge of knowledge transfer in the global factory is _______

Accepted Answer

Tacit knowledge is embedded in the mind of individuals and cannot easily be codified and transferred across borders.

Question 19

What potential advantages can be gained from globalising R&D activities

Accepted Answer

Subsidiaries can be located in locations where land, capital, and scientific talent are available at a lower cost than the home country.

Question 20

How should management respond to innovation failure to foster an innovation culture?

Accepted Answer

Innovation takes place in an environment where innovation is encouraged given acceptable levels of risk.

Quiz 13: Global Innovation Management