MGT 3830

dynamic capabilites

a firm's higher level ability to learn new capabilities

a firm's ability to respond quickly to external change depends upon:

accurate information readily available and a short product-cycle time

as an industry moves through the stages of the life cycle, overall strategies tend to

change in most major aspects

an organization that engages in both exploitative and explorative activities in the same organizational units, when the same people employs ___

contextual ambidexterity

the number of firms in most industries tends to ___ with the onset of the maturity stage of the industry life cycle

decrease significantly

the difference between "evolutionary" standards strategies is

evolutionary strategies maintain capabilities with what went before

a cost leadership strategy means a firm must:

exploit sources of cost advantage in providing customers with a standardized product

a key success factor in the maturity stage of the industry life cycle is a firm's ability to develop the necessary supporting capabilities to scale up production of its good/service

false

emphasis often shifts from process innovation to product innovation once a dominant design emerges

false

in the context of innovation, lead-time refers to the period of time during which a firm is the market leader for a new product or service

false

isolating mechanisms are forces that tend to equalize profit rates among firms, i.e., phenomena that erode a firm's competitive advantage

false

research has shown that higher R&D output has a strong positive relationship with firm performance

false

the industry life consists of 4 stages: 1) introduction, 2) growth, 3) plateau, and 4) rejuvenation

false

if a strong regime of appropriability exists, the innovating firm

has the advantage in terms of capturing a significant portion of value created by innovation

competitive advantage and technology are linked by

innovation

Michael porter's early work suggest that combining cost leadership and differentiation strategies:

is likely to result in a firm becoming "stuck in the middle"

standards emerge in markets that are subject to ___

network externalities

differentiation is when a firm:

offers customers something valuable and unique for which customers are willing to pay a price premium

Strategic Innovation

pioneering along at least one of three dimensions: new industry, new customer segment, or a new source of competitive advantage

the key challenges for firms entering the growth stage of the industry life cycle include

scaling up output to meet demand, obtaining sufficient resources and capabilities to support effective scaling-up of operations, adapting product designs and manufacturing capabilities to accommodate large-scale productions

once established, competitive advantage is:

subject to erosion by competitors or new entrants

the idea that an organization's existing capabilities are path dependent means that

the capabilities it possesses today are the result of the steps it has taken throughout his history

the extent to which an innovation leads to greater profit for the innovating firm depends upon

the creation of value for consumers by the innovation, the appropriation of value created from the innovation by the innovating firm

the most successful follower strategies are

those that initiate a product's transition from niche market to mass market

an innovation diffuses

through the adoption of products by customers and the imitation by competitors

external changes can only give rise to competitive advantage when those changes differentially affect firms.

true

if a firm is able to establish clear property rights over its innovation, then there is an advantage in leading

true

in the long run, competition eliminates differences in profitability between firms

true

two main factors drive industry evolution: demand growth and the production and diffusion of knowledge

true

____ refers to the idea that, when a would-be imitator cannot clearly understand the causes of a competitor's success, any attempt to imitate that strategy is subject to unknown success

uncertain imitability