Question 1

______ is usually defined as the creation of novelty that provides economic value through the creation of new products and services.

Accepted Answer

Innovation is the creation of something new that provides economic value through the introduction of new or improved products, services, or processes. Invention, on the other hand, is the creation of a new product, process or technology that did not exist before. Managerial sophistication refers to the level of expertise and skill required to manage a business effectively but is not directly related to the creation of new products and services.

Question 2

According to Marceau, innovation often requires:

Accepted Answer

While having additional resources, such as money, can certainly facilitate innovation, the establishment of new work practices is often a critical aspect of innovation. A change of CEO may or may not be necessary for innovation, depending on the circumstances. Therefore, option A is the best choice.

Question 3

______ is often confused with or mistaken for ______.

Accepted Answer

Innovation and invention are often used interchangeably, but they have different meanings. Invention refers to the process of creating a new product or technology, while innovation refers to the process of taking an existing product or technology and improving it or finding new applications for it.

Question 4

The smartphone and the iPad are both examples of:

Accepted Answer

Both the smartphone and the iPad are examples of innovations, meaning they are new and improved versions of existing products that offer enhanced features and functionality.

Question 5

Innovation often or always involves:

Accepted Answer

Money is often needed for research, development, and implementation of new ideas. A supporting organizational structure and ethos help in fostering an environment conducive to innovation. Learning is a crucial component of innovation as it involves refining existing skills and acquiring new ones. Therefore, all the given choices are necessary for innovation.

Question 6

______ means doing new things.

Accepted Answer

Product innovation involves creating new products or significantly improving existing ones, which aligns with the concept of doing new things.

Question 7

______ fundamentally changes the products offered.

Accepted Answer

Radical innovation refers to introducing entirely new products to the market, which fundamentally changes the offerings available to the consumers. Severe invention and rapid invention do not have clear definitions and may not accurately describe the impact on product offerings. Total elimination refers to removing a product or service entirely, rather than introducing a new one.

Question 8

A ______ is defined as an evolving ecosystem that is created from many interconnected pieces.

Accepted Answer

A platform is typically defined as a base or foundation upon which many other components can be built and integrated. In this context, an evolving ecosystem can be seen as a complex system of various components that have been built up over time, and which are interconnected and interdependent. Thus, a platform is a suitable choice for describing this type of system. Mechanism and structure are too specific and limited in their meanings, and management style is not relevant to the definition given.

Question 9

According to Schumpeter, which notion describes the 'process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one'?

Accepted Answer

Schumpeter's notion of "creative destruction" describes the constant process of innovation and change in the economy, which leads to the destruction of old industries and the creation of new ones. It is an essential concept in understanding economic growth and development.

Question 10

According to Christensen, what is the reason that sustaining technologies do not produce innovation?

Accepted Answer

Sustaining technologies focus on improving the performance of existing products rather than creating new ones, so they do not produce innovation. The other answer choices are incorrect.

Question 11

Disruptive technologies may result in worse performance (at least in the short term) for:

Accepted Answer

Disruptive technologies often introduce new ways of doing things that can make existing products and technologies obsolete. This can lead to worse performance for existing products in the short term, as they struggle to keep up with the new competition. However, in the long term, disruptive technologies can also create new opportunities for innovation and growth.

Question 12

Innovation is learning either how to make different things or how to make things differently. The first of these is ______ innovation; the second is ______ innovation.

Accepted Answer

Product innovation means creating something new or improving existing products, while process innovation refers to finding new ways of producing or delivering products. Therefore, the first option in the question should be product innovation as it refers to making different things, and the second option should be process innovation as it refers to making things differently.

Question 13

______ innovation makes small and continuous improvements to an existing product.

Accepted Answer

Incremental innovation is all about making small improvements to an existing product, service or process. It aims to enhance the existing functionalities, features or design of the products to make them more efficient, effective, and customer-oriented. It doesn't involve any disruptive changes, new inventions or concepts, but focuses on improving the user experience, reducing costs, or increasing productivity.

Question 14

What do we call those companies that control, or at least shape, the structure of overarching systems architecture?

Accepted Answer

Platform leaders are companies that have significant control over the structure and architecture of overarching systems, such as technology platforms or ecosystems. They often set standards and rules for others to follow and shape the direction of the industry. Industry leaders, market leaders, and senior architect firms may have influence, but platform leaders are specifically focused on shaping the architecture of overarching systems.

Question 15

According to Wirtz et al., which environment is characterized by 'rapid, discontinuous and simultaneous change in demand, competitors, technology and regulation'?

Accepted Answer

According to Wirtz et al., a high-velocity environment is characterized by 'rapid, discontinuous and simultaneous change in demand, competitors, technology and regulation'. Choice A is the only option that accurately reflects this definition.

Question 16

Innovative strategy is not an event or a plan but a continuous process of being alert. In which environment does this mostly stand true?

Accepted Answer

Innovative strategy requires being continuously alert and adaptable, which is particularly relevant in a high-velocity environment where the pace of change is rapid and unpredictable. In a stable environment, there may be less urgency to constantly innovate, while in a foreign environment, there may be more focus on adapting to cultural differences and existing practices rather than forging new strategies.

Question 17

What do Tidd and Bessant propose as a way of supplementing the problems of the rationalist approach?

Accepted Answer

Tidd and Bessant propose incremental design as a way of supplementing the problems of the rationalist approach. They suggest that innovation can occur in small steps rather than big leaps, and that by making incremental improvements, firms can reduce risk and learn from each iteration.

Question 18

Kamoche and Cunha define ______ as 'the conception of action as it unfolds, by an organization and/or its members, drawing on available material, cognitive, affective and social resources'.

Accepted Answer

The definition given describes the concept of organizational improvisation, which involves the ability to respond and adapt to the unfolding situation by utilizing different resources available. Organizational design, innovation, and management creativity are related concepts but do not fully capture the definition provided.

Question 19

According to Weick, what characterizes just-in-time strategies?

Accepted Answer

According to Weick, just-in-time strategies are characterized by less investment in front-end loading, more investment in general knowledge, and sophistication in cutting losses. Therefore, all of these options are the correct answer.

Question 20

According to Mintzberg, why can't the innovative organization rely on deliberate strategy?

Accepted Answer

Mintzberg argues that an innovative organization cannot rely solely on deliberate strategy because it must operate in a complex and unpredictable environment where new ideas and opportunities can arise unexpectedly. Therefore, it needs to be able to adapt and quickly respond to changes rather than follow a pre-determined plan that may not be relevant anymore. The cost and difficulty of deliberate strategy are not necessarily the main reasons why it may not be suitable for an innovative organization.

Quiz 4: Strategy and Innovation