Question 1

The ________ is the set of values and norms that govern the behavior of a population of organizations.

Accepted Answer

The institutional environment refers to the set of values and norms that govern the behavior of a population of organizations. This includes formal rules and regulations as well as informal norms and values shared by members of the society. Cultural cluster may refer to a group of countries or regions that share similar cultural characteristics, but it does not necessarily encompass the entire set of values and norms that govern organizational behavior. Environmental benchmark and population density are not directly relevant to the concept of institutional environment.

Question 2

________ use their well-developed competences to compete for resources in many or all niches in an environment.

Accepted Answer

Generalist organizations are able to survive in a wide range of environments by using their well-developed competences to compete for resources in many or all niches.

Question 3

An organization that increasingly depends on other organizations will tend to adopt their values and norms so it will become increasingly similar to them. This is an example of ________.

Accepted Answer

Coercive isomorphism occurs when an organization adopts the values and norms of other organizations due to dependency, often to gain legitimacy or resources.

Question 4

According to the population ecology theory, which of the following strategies advocates entering an environment late, after the uncertainty in that environment is reduced and the correct way to compete is apparent?

Accepted Answer

The K-strategy advocates entering an environment late, after the uncertainty in that environment is reduced and the correct way to compete is apparent. K-strategists are known as specialists, meaning they have a narrow niche and compete for specific resources, which they require to succeed in their ecosystem.

Question 5

Which of the following statements is most likely to be true about generalists?

Accepted Answer

Generalists have a broad range of skills and knowledge, which allows them to adapt more easily to changing environments and handle uncertainty. This gives them an advantage over specialists in situations where there is a lot of uncertainty. A and B are incorrect because generalists do not concentrate their skills in one niche nor do they necessarily use matrix structures more than specialists. C is incorrect because product differentiation strategy is not necessarily more likely to be used by generalists.

Question 6

Which of the following statements is most likely to be true about specialists?

Accepted Answer

Specialization allows individuals or companies to develop core competences in a specific niche or area, which often leads to a competitive advantage over generalists who may produce a wider range of products, but not necessarily excel in any one area.

Question 7

A large, established organization pursues a broad range of resources in many niches. This company created a new niche in which a new firm could enter and survive. Which of the following strategies is most likely to be used by the organization that enters the newly created niche?

Accepted Answer

Since the large, established organization pursues a broad range of resources in many niches, they are likely to have created a new niche that requires specific knowledge and expertise (K-specialist). Therefore, the best strategy for the new firm entering this niche would be to also specialize in this specific knowledge and become a K-specialist to effectively compete with the established organization.

Question 8

An entrepreneur designs a new product. Which of the following strategies is most likely to be pursued by the entrepreneur?

Accepted Answer

The answer of An entrepreneur designs a new product. Which...

Question 9

Which of the following statements is most likely to be true regarding an organization that follows an r-strategy?

Accepted Answer

Organizations following an r-strategy focus on rapid growth and expansion, often in new or underexploited markets, which allows them to obtain first-mover advantages by being among the first to enter these markets.

Question 10

________ is the process that ensures the survival of the organizations that have the skills and abilities that best fit the environment.

Accepted Answer

The process being described is natural selection, which refers to the selection of organisms that are best adapted to survive and reproduce in a particular environment. This concept is often applied to organizations as well, as those with the most favorable skills, abilities, and resources are more likely to innovate, successfully compete, and survive in their respective industries. Triangulation refers to the use of multiple methods or sources to gather and verify data, while stimulus generalization and habituation are concepts related to learning and behavior.

Question 11

Organizational ________ is the life cycle stage in which organizations develop value-creation skills and competences that allow them to acquire additional resources.

Accepted Answer

Organizational growth is the life cycle stage where businesses enhance their value-creation skills, and they achieve additional competencies that allow them to accumulate additional resources. During this phase, companies will usually expand their operations, hire additional personnel, and increase the number of products or services offered. As a result, they become stronger and more competitive in their industry.

Question 12

According to the population ecology theory, which of the following strategies advocates entering a new environment early?

Accepted Answer

The r-strategy, according to population ecology theory, advocates for entering a new environment early. This strategy focuses on rapid growth and reproduction, aiming to quickly exploit new or unoccupied environments.

Question 13

Population ecologists have identified two sets of strategies that organizations can use to gain access to resources and enhance their chances of survival in the environment. Which of the following is one of these strategies?

Accepted Answer

The two sets of strategies identified by population ecologists are the r-strategy and the K-strategy. The r-strategy involves rapid reproduction and a focus on quantity over quality, which allows organizations to quickly colonize new environments and gain access to resources. The other strategies listed (vertical integration, related diversification, and cost leadership) are not related to ecological strategies for survival.

Question 14

________ concentrate their competences and skills to compete for resources in a single niche.

Accepted Answer

Specialist organizations concentrate their competences and skills in a single niche to become experts in that area and compete for resources in that specific market. Organizations pursuing r-strategy focus on quickly reproducing and spreading, generalist organizations have broad competences in various areas, and organizations pursuing K-strategy invest in quality and long-term survival strategies.

Question 15

According to the population ecology theory, the number of organizational births in a new environment is rapid at first because ________.

Accepted Answer

According to the population ecology theory, the number of organizational births is rapid at first because of an increase in the knowledge and skills available to generate similar new organizations. This means that as more people become aware of successful business models in the new environment, they are inspired to create similar organizations, leading to a rapid increase in the number of organizational births.

Question 16

The benefits an organization derives from being an early entrant into a new environment are called ________.

Accepted Answer

First-mover advantages refer to the advantages that an organization gains by being the first to enter a new market, such as brand recognition, customer loyalty, and economies of scale. Options A, B, and D are not related to the benefits of being an early entrant into a new environment.

Question 17

A large video company observes that smaller companies are having success with pay-per-view movies and decides to enter the pay-per-view market. According to the population ecology theory, which of the following strategies is being followed by the large video company?

Accepted Answer

The large video company is following a K-strategy, which is characterized by larger, established companies entering stable environments and focusing on efficiency and quality to compete. This contrasts with the r-strategy, which involves rapid growth and adaptation, often seen in new or small companies entering a market.

Question 18

Which of the following statements is most likely to be true regarding an organization that follows a K-strategy?

Accepted Answer

Organizations following a K-strategy are typically characterized by waiting to enter a new environment until the uncertainty in that environment is reduced. They focus on long-term investments in research and development to create highly specialized and complex products or services, and concentrate competences and skills to compete for resources in a single niche. It is not necessarily true that they have a monopoly in the industry or that they always introduce highly complex technical products.

Question 19

Early in an environment, as a niche develops and new resources become available, new organizations that begin to operate in this niche are likely to be ________.

Accepted Answer

r-specialists are organisms that thrive in environments where resources are abundant but competition is high. They are characterized by rapid growth and reproduction, which allows them to quickly exploit new or temporary niches. Early in an environment, as new resources become available, r-specialists are more likely to succeed because they can rapidly take advantage of these conditions before competitors stabilize the environment, making it more suitable for K-specialists, which are adapted to stable environments with intense competition.

Question 20

Which of the following theories proposes that an organization must gain legitimacy in the eyes of stakeholders in order to grow and survive?

Accepted Answer

Institutional theory proposes that organizations must gain legitimacy in the eyes of stakeholders in order to survive and grow. Legitimacy is achieved by conforming to societal norms, values, and expectations. Organizations that fail to gain legitimacy may struggle to survive in the long run. Greiner's theory focuses on the stages of growth within an organization, while population ecology theory focuses on the survival of the fittest organizations in a competitive environment. Contingency theory proposes that the effectiveness of an organizational structure or strategy is contingent upon various factors, such as the external environment and internal resources.

Quiz 11: Organizational Transformations: Birth, Growth, Decline, and Death