MGMT 475 (Chap. 13)
an incremental innovation.
3M's Cubitron II, described as "an industrial abrasive that cuts faster, lasts longer, sharpens itself, and requires less elbow grease than any other abrasive on the market" is an example of:
the effect it can have on the firm's own ability to produce innovations.
A negative effect of acquiring other firms for the purpose of innovation is:
T
A society's cultural characteristics influence a nation's rate of entrepreneurship and its related practices. (T/F)
incremental; novel.
A successful ____ innovation will be less risky but less profitable than a successful ____ innovation.
create wealth.
According to Peter Drucker,the primary goal of innovation is to:
T
An organization engaging in strategic entrepreneurship focuses on identifying opportunities that it can exploit through innovations. (T/F)
T
As a process, entrepreneurship results in the "creative destruction" of existing products (goods or services) or methods of producing them and replaces them with new products and production methods. (T/F)
bottom-up
Autonomous strategic behavior is a(n) ____ process in which product champions pursue new ideas.
creative destruction.
Because it replaces existing products and methods of production, entrepreneurship is a process of:
uses the autonomous strategic behavior form of internal corporate venturing.
Charles is a customer service representative for a home improvement store. He has creative ideas about how to increase customer satisfaction. Charles's talents will be most likely to be used in a firm that:
F
Corporate entrepreneurship describes the opportunity seeking and exploitation of innovations in new start-up enterprises. (T/F)
T
Entrepreneurial opportunities are conditions in which new goods or services can satisfy a need in the market.
T
Entrepreneurial opportunities exist because of competitive imperfections in the markets and among the factors of production. (T/F)
preference for certainly about projects.
Entrepreneurs tend to have all the following characteristics EXCEPT:
T
Entrepreneurship is the economic engine driving national economic growth in many nations. (T/F)
opportunities; resources.
Entrepreneurship is the process by which individuals or groups identify and pursue ____ without being immediately constrained by the ____ they currently control.
F
Evidence demonstrates that large firms with well-funded R&D operations are more effective at innovation than are smaller firms. (T/F)
via divestiture of low-performing units.
Firms develop innovations in all the following ways EXCEPT:
F
For firms to be entrepreneurial, they must stress individualism in their employees above all other characteristics. (T/F)
F
Given the rapid rate of technological change, patents are not a useful gauge of a firm's entrepreneurial prowess. (T/F)
its investors will react positively to the introduction of the new product because of the potential for higher returns.
GreenBox, a company that recycles paper products to make cardboard cartons, has introduced a new product that resists damage by moisture. GreenBox can expect that:
T
If the company's workers have scant existing knowledge, their "absorptive capacity" to learn new knowledge will be limited. (T/F)
high absorptive capacity to learn.
If the firm's current employees are well-trained in their jobs, but also have other knowledge, skills, and abilities, these employees have:
F
In order to be successful, a new entrepreneurial enterprise should be sheltered from the global environment until it is firmly established in domestic markets. (T/F)
top-down
Induced strategic behavior as a form of internal innovation is a(n) ____ process.
are aligned closely with current strategy and structure.
Induced strategic behavior is a process that fosters product innovations that:
commercial product.
Innovation creates a(n):
T
Innovation is the means by which the entrepreneur creates wealth. (T/F)
involve substantial uncertainty and risk.
Innovations that involve significant technological breakthroughs and create new knowledge:
strategic alliances.
Internal corporate venturing does NOT involve:
F
Invention is defined as the adoption of a similar innovation by different firms. (T/F)
T
Joseph Schumpeter suggested that firms engage in three types of innovative activity when managing the innovation process: imitation, invention, and innovation. (T/F)
the receiving party has adequate absorptive capacity to learn.
Knowledge must be transferred to others in the firm to enhance the entrepreneurial competence of the firm. This requires that:
T
Larger, established firms, mainly those competing globally, use their R&D labs to create disruptive technologies and products. (T/F)
F
Most large, complex firms innovate through cooperative strategies or strategic alliances, but not through internal activities. (T/F)
is encouraged through a bottom-up or top-down process.
One of the distinguishing differences between the two sources of internal corporate venturing (autonomous strategic behavior and induced strategic behavior) is whether the innovation process:
incremental innovation.
Panera Bread has innovated to improve the quality of its distribution system, to improve the quality of its bread dough, and to introduce new menu items. These are examples of:
imitation; innovation.
Products developed through ______ are often offered at lower prices without as many features as products developed through ______.
a long wait for an uncertain payoff.
QuadroVax is investing heavily in research and development on new methods of vaccine development that would speed up the creation of vaccines for newly emerging viruses and to get these vaccines to the market rapidly. QuadroVax's shareholders can expect:
T
Research has shown that internationally diversified firms are generally more innovative. (T/F)
more innovative.
Research shows that internationally diversified firms tend to be ____ than domestic-only firms.
a balance between individualism and cooperative behavior
Research suggests that _________ is needed to encourage entrepreneurial behavior.
significant spending on R&D.
Successfully creating innovations through internal means requires:
novel; incremental.
The development of the original personal computer (PC) was a(n) ____ innovation at the time, whereas adding a different kind of whitening agent to a soap detergent in an example of a(n) ____ innovation.
F
The entrepreneurial mind-set is found primarily among managerial and scientific employees. (T/F)
F
The essence of entrepreneurship is to capture most of the existing markets from less aggressive and innovative competitors. (T/F)
product champions.
The idea that it is "vital to sell the ideas to others in the organization so that innovations will be commercialized" is the rationale behind the use of:
positively related to.
The level of entrepreneurial activity in a nation is ____ the nation's level of economic development.
the use of induced strategic behavior
The new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units. As such, Cubitron II is an example of:
level of innovation in a firm.
The number of patents held by an organization is a rough guide to the:
strong "buy-domestic" programs.
The risks of international entrepreneurship include all the following EXCEPT:
implementation.
The three types of innovative activity include all of the following EXCEPT:
corporate entrepreneurship.
The use or application of entrepreneurship within an established firm is called:
the diffusion of tacit knowledge.
To be successful, an autonomous process for developing new products relies on:
internal corporate venturing.
WayWard Products has a deliberate strategy to encourage internal innovations. It has established processes to support autonomous strategic behavior as well as induced strategic behavior. WayWard Products is involved in:
a balance of individualism and collectivism.
Which of the following is true? For firms to be entrepreneurial, they require a culture with:
Entrepreneurial opportunities
____ exist(s) when there is a need in the market that can be satisfied by new goods or services.
Internal corporate venturing
____ involves internally developed incremental and novel innovations that result from deliberate efforts.
Culture.
____ is one of the reasons for the differences in rates of entrepreneurship among different countries.
Entrepreneurs.
____are individuals, acting independently or as part of an organization, who see an opportunity and then take risks to develop an innovation to exploit it.
