Chapter 4 MCQs

1. Creative destruction is when:

a) Innovative solutions are introduced by SMEs, which undermines the current practice in
the economy and thereby moves entrepreneurs out of business.
b) Innovative solutions are introduced by entrepreneurs, which undermines the current
practice in the economy and thereby moves other products, production methods and
even companies out of business.
c) Innovative solutions are introduced by universities, which undermines the current
practice in the economy and thereby moves other products, production methods and
even companies out of business.
d) Innovative solutions are introduced by large multinationals, which undermines the
current practice in the economy and thereby moves entrepreneurs out of business.

2. is a term commonly used when users or market forces drive changes within an
innovation.
a) Technology push
b) Market pull
c) Market push
d) Technology pull

3. An example of process innovation is:

a) Online services such as Dropbox
b) Tablet computers
c) Dell’s production and delivery of mass customised computer
d) All of the above

4. Incremental innovation involves than radical innovation:

a) Lower risk
b) Higher risk
c) Higher degree of change
d) None of the above

5. Incremental innovations consist of:

a) Big changes in products
b) Disruptive changes in products
c) Radical changes in products
d) Smaller improvements in products

6. are novel technological solutions that serve as a platform for distribution of

services.
a) Incremental innovation
b) Radical innovation
 c) Platform innovation
d) Infrastructure innovation

7. The aim of the Diagnose stage within the technology innovation life cycle is to:
a) Identify and evaluate new ideas for products and processes
b) Transform the idea into a viable product or process
c) Introduce the product to the market
d) Monitor and assess the product

8. Open innovation is based on the acknowledgement that:

a) The best competence and the best ideas are often found within the company needing it
b) An innovation brings significant upheaval within an industry
c) An innovation has major implications for all of the major stakeholders
d) The best competence and the best ideas often are outside the company needing it

9. Which of the following is a key characteristic of disruptive innovations?

a) Solution is more simple and lower-quality
b) Solution is more user-friendly
c) Solution is cheaper
d) None of the above

10. Within the Technology Adaption Life Cycle, innovators are known as:
a) Visionaries
b) Technology Enthusiasts
c) Pragmatists
d) Conservatives

11. Which of the following groups provide good testing ground for new technologies?
a) Visionaries
b) Technology Enthusiasts
c) Pragmatists
d) Conservatives

12. Which of the following is not one of the five stages in the innovation decision process
theory?
a) Knowledge
b) Decision
c) Complexity
d) Implementation

13. The theory states that an innovation goes through a period of slow, gradual
growth before a period of speedy and significant growth.
a) Rate of adoption theory
b) Innovation decision process theory
c) Theory of perceived attributes
 d) Individual innovativeness theory

14. The group that are quickest to adopt a new innovation are known as:
a) Innovators
b) Early adopters
c) Early majority
d) Laggards

15. Within the Contrary Forces Model, mobilisation:

a) Leads to divergence of the innovation
b) Is directed towards formulating and testing propositions
c) Seeks to converge and simplify the idea
d) Explores the innovation’s potential