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
