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q2

q2flashcards|Quizlet

97 terms by saseta

If an individual knows a field too well, it

can stifle creativity.

TRUE

An individual with only a moderate

degree of knowledge of a field will be
able to produce more creative
solutions than an individual with
extensive knowledge of the field.

TRUE

An organization's overall creativity level

is a simple aggregate of the creativity of
the individuals it employs.

FALSE

Monetary rewards undermine creativity

by encouraging employees to focus on
extrinsic rather than intrinsic
motivation.

TRUE

Inventors tendency toward introversion

cause them to be good at manipulating
concepts.

TRUE

The qualities that make people

inventive also make them
entrepreneurial.

FALSE

Innovation often originates with those

who create solutions for their own
needs.

TRUE

User innovators typically create new

product innovations in order to profit
from the sale of the innovation to
customers.

FALSE

The terms research and development

represent different kinds of investment
in innovation-related activities.

TRUE

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The science-push approach to research

and development argued that
innovation was driven by the perceived
demand of potential users.

FALSE

Firms form alliances with competitors

to jointly work on an innovation project
or to exchange information.

TRUE

The intellectual property policies of a

university embrace both patentable
and unpatentable innovations.

TRUE

Incubators are regional districts,

typically set up by government, to
foster R&D collaboration between
government, universities, and private
firms.

FALSE

The decline in the government share of

spending on R&D is largely due to the
rapid increase in industry R&D funding
rather than a real decline in the
absolute amount spent.

TRUE

Collaborative research is prohibited in

high-technology sectors.

FALSE

Knowledge that cannot be readily

codified is called explicit knowledge.

FALSE

Proximity and interaction can directly

influence firms' ability and willingness
to exchange knowledge.

TRUE

Knowledge that is explicit requires

more frequent and close interaction to
be meaningfully exchanged than
knowledge that is tacit.

FALSE

Tacit knowledge is knowledge that can

be documented in written form.

FALSE

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The degree to which innovative

activities are geographically clustered is
independent of the national differences
in the way technology development is
funded or protected.

FALSE

Early leaders are firms that are the first

to enter the market.

FALSE

Early followers enter the market only

after a product begins to penetrate the
mass market.

FALSE

The initial cost of a good itself can be a

switching cost.

TRUE

The time invested by buyers to become

familiar with a product's operation
cannot be considered as a switching
cost.

FALSE

In an industry characterized by
increasing returns to adoption, there
can be powerful advantages to being
an early provider.

TRUE

Late entrants typically bear the bulk of

research and development expenses.

FALSE

First movers typically invest more in

exploratory research than late
entrants.

TRUE

For a very new product technology,

market research will be of great help.

FALSE

If you are a first mover in the market of

a new technology, you may find that
your product offerings will have to be
revised as consumers reveal their
preferences.

TRUE

A technology may be underdeveloped

and its fit with customer needs
unknown in the early market stages.

TRUE

All pioneers face customer uncertainty.

FALSE

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Other things being equal, less customer

uncertainty favors earlier timing of
entry.

TRUE

When a market is characterized by

mature enabling technologies, a firm
should enter the market late.

FALSE

Not all innovations require

complementary goods.

TRUE

If entry barriers are high, entering a

market early becomes necessary.

FALSE

In industries that have increasing

returns to adoption, allowing
competitors to get a head start in
building an installed base is a safe
strategy.

FALSE

The credibility of a firm can influence

the rate of adoption of its technology.

TRUE

Many start-up firms demise because

new innovations tend to be adopted
very slowly at first.

TRUE

A firm intending to refine an earlier

entrant's technology should avoid fastcycle development processes.

FALSE

New product development time

increases when using strategic alliances
and cross-functional teams.

FALSE

Investing in process innovation helps

firms lower their costs.

TRUE

Flexible manufacturing technologies

have increased the importance of
production economies of scale.

FALSE

Globalization of markets has reduced

the importance of innovation.

FALSE

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Innovation and new technologies have

led to longer product life cycles and
lowered product obsolescence.

FALSE

Technological innovation decreases the

amount of output achievable from a
given quantity of labor and capital.

FALSE

GDP does not relate directly to the

amount of goods consumers can
purchase.

FALSE

Externalities are costs that are borne by

individuals other than those
responsible for creating them.

TRUE

Technological innovation results in

complete eradication of negative
externalities.

FALSE

If a business discharges untreated

chemical waste into local water bodies,
it imposes a negative externality on the
community members.

TRUE

Firms that charge headlong into new

product development usually have
short development cycles.

FALSE

Most innovative ideas do not become

successful new products.

TRUE

The majority of effort and money

invested in technological innovation
comes from non-industrial firms.

FALSE

The innovation process is often

conceived of as a funnel, because most
potential new product ideas make it
through the development process.

FALSE

According to the concept of innovation

funnel, the number of successful
products launched will be greater than
the number of raw ideas generated.

FALSE

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According to the concept of the

innovation funnel, one new idea is
usually responsible for several new
products.

FALSE

A firm's organizational structure and

control systems have no influence on
the generation of innovative ideas.

FALSE

Increasing returns to adoption means

that, the more a technology is adopted,
the more valuable it becomes.

TRUE

The learning curve indicates that the

more units a company produces of an
item, the more each unit will cost.

FALSE

Though learning curves are found in a

wide range of organizational processes,
there are substantial differences in the
rates at which organizations learn.

TRUE

The ability of an organization to

recognize, assimilate, and utilize new
knowledge is referred to as learning
effect.

FALSE

As firms develop complementary

technologies to improve the
productivity or ease of utilization of the
core technology, the technology
becomes less attractive to other firms.

FALSE

In a market characterized by network

externalities, the benefit from using a
good decreases with an increase in the
number of other users of the same
good.

FALSE

Network externalities cannot arise in

markets that do not have physical
networks.

FALSE

Products that have a large installed

base are likely to attract more
developers of complementary goods.

TRUE

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A legally induced adherence to a

dominant design is not possible.

FALSE

A firm that supports a technology that

is not chosen as the dominant design
will have better potential to earn nearmonopoly rents in the short run than a
firm that develops a dominant design.

FALSE

The influence of a dominant design can

extend beyond its own technology
cycle.

TRUE

Technologically superior products do

not always win in the market.

TRUE

The "Buyer Utility Map" developed by

Kim and Mauborgne cannot be applied
to industrial products.

FALSE

In industries characterized by network

externalities, the value of a
technological innovation to users will
be a function only of its stand-alone
benefits and cost.

FALSE

In industries characterized by
increasing returns, the rate of return
from a product or process increases
with the size of its installed base.

TRUE

For a new technology to be successful

in a market, it is enough for the new
technology's stand-alone utility to
exceed that of the incumbent standard.

FALSE

A large perceived installed base can

lead to a large actual installed base.

TRUE

When an industry has network

externalities, the value of a good to a
user is more likely to go up linearly
rather than increase in an s-shape.

FALSE

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Network externality returns refers to

the value customers reap as a larger
portion of the market adopts the same
good.

TRUE

By choosing not to exercise its

monopoly power, a firm can steepen its
monopoly costs curve.

FALSE

The path a technology follows through

time is termed its technology transfer.

FALSE

Product innovations are more visible

than process innovations.

TRUE

An innovation can be competence

enhancing to one firm, while
competence destroying for another.

TRUE

A modular innovation significantly

affects the overall configuration of a
system.

FALSE

For a firm to adopt a component

innovation, it typically requires that the
firm have architectural knowledge
about the way components link and
integrate to form a whole system.

FALSE

S-curves in technology performance

and s-curves in technology diffusion
are fundamentally different processes.

TRUE

Then a technology's performance is

plotted against the amount of effort
and money invested in the technology,
it typically shows slow initial
improvement, then accelerated
improvement, then diminishing
improvement.

TRUE

In the context of s-curves in

technological improvement,
performance improvement in the early
stages of a technology is rapid.

FALSE

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In the context of s-curves in

technological improvement, as a
technology begins to reach its inherent
limits, the cost of each marginal
improvement decreases.

FALSE

Technologies always get the

opportunity to reach their performance
limits before being replaced by a new
technology.

FALSE

Technology diffusion curve is s-shaped

because adoption is initially fast when a
new technology is introduced to the
market.

FALSE

Technology diffusion and information

diffusion take the same amount of
time.

FALSE

S-curves of technology diffusion are in

part a function of the s-curves in
technology improvement.

TRUE

Firms cannot influence the shape of the

s-curve through their development
activities.

FALSE

It is possible for a firm that follows an

s-curve model too closely to end up
switching technologies later than it
should.

TRUE

Among the various adopter categories,

innovators have the greatest potential
for opinion leadership.

FALSE

The last 16 percent of the individuals in

a social system to adopt an innovation
are termed as late majority.

FALSE

According to the Utterback and

Abernathy model, firms in the fluid
phase avoid experimenting with
different form factors or product
features.

FALSE

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According to Anderson and Tushman,

in the era of ferment, firms focus on
efficiency and market penetration.

FALSE

According to Anderson and Tushman,

in the era of incremental change, most
competition revolves around improving
components rather than altering the
architecture.

TRUE

As firms' routines and capabilities

become more and more oriented
around the dominant architecture, the
firms become less able to identify and
respond to a major architectural
innovation.

TRUE

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