Deck 13: Global Innovation Management

Question 1

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

Answer 1

True
Explanation: This is the definition of innovation.

Question 2

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

Answer 2

True
Explanation: 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.

Answer 3

False
Explanation: 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.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

Tacit knowledge can be expressed, codified, and articulated.

Question 11

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

A) Technological and commercial succes of the project
B) IPR and appropriability regimes
C) Innovations of rivals
D) Knowledge leakage and diffusion

Question 12

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

A) Organisational learning
B) Increase absorptive capacity of foreign based subsidiaries
C) Help units compete with local firms
D) Strengthen capabilities of foreign based subsidiaries

Question 13

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

A) Limits knowledge spill-over to other firms
B) Reduces cost of innovation
C) Using broader range of expertise
D) Can lead to the development of new technological opportunities

Question 14

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

A) Identifying opportunities for knowledge sharing
B) Knowledge retention
C) Willingness to share knowledge
D) Efficiency in knowledge transmission

Question 15

Process innovation refers to _______ Please select all that apply.

A) The development of a new service
B) The implementation of a new or improved production method
C) The development of a new product
D) The development of new products or services

Question 16

A key characteristic of open innovation is _______

A) Increased cooperation by geographically spread R&D subsidiaries of the lead firm
B) Globalising R&D centres
C) Acquiring knowledge and expertise from the market
D) Improved exploiting of firm resources and capabilities

Question 17

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

A) Defence mechanism
B) Way to improve processes
C) Way to develop new products
D) Way to disrupt the competition

Question 18

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

A) Transferring tacit knowledge across borders
B) Transferring explicit knowledge across borders
C) Transferring tacit knowledge in foreign subsidiaries
D) Transferring explicit and tacit knowledge across borders

Question 19

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

A) Subsidiaries offer financial advantage and access to technical knowledge and skills
B) Subsidiaries offer financial advantages such as lower land and labour cost
C) Subsidiaries offer access to local firms
D) Subsidiaries offer access to technical knowledge and skills

Question 20

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

A) Be supportive and do not focus on the failure
B) Express anger and frustration
C) Dismiss the employee(s)
D) Outsource the R&D function