ISF MTE
1. Network building to support innovation is based on developing close and strong ties. Which among the routines of management archetypes does the statement belong in?
a. Operating Routines
b. Strategic Decision Making
c. Interpretative Schema
d. Strategic Direction
2. Which is not a core element of implementation in an innovation process model?
a. Acquisition of knowledge resources,
b. execution of the project
c. resolving inputs and assisting progress
d. launching or sustaining the innovation
3. According to Rothwell’s Five Generation of Innovation Models, which involves system integration and extensive networking, flexible and customized response and serves continuous innovation?
a. Technology push
b. market pull
c. coupling model
d. network model
4. This requires strong commitment to competitor analysis and intelligence, to reverse engineering (i.e. testing, evaluating and taking competitor’s products in order to understand how they work, how they are made and why they appeal to customers), and to cost cutting and learning if manufacturing.
a. Innovation leadership
b. innovation followership
c. innovation internship
d. innovation imposition
5. Which is not among the implications for the processes of strategy formation?
a. Expect to change strategies in the light of new (and often unexpected) evidence.
b. Encourage the use of multiple sources of information, debate and skepticism.
c. Ensure broad participation and informal channels of communication.
d. Given certainty, explore the implications of a range of possible future trends.
6. Innovations do not come out in an instant. It always begins with a question which leads to curiosity, to the discovery of a new phenomenon.
a. Basic Research
b. Disruptive Innovation
c. Breakthrough Innovation
d. Sustaining Innovation
7. The opportunity to learn from progressing through cycles to build knowledge base and improve ways to manage processes.
a. Search
b. Selection
c. Implementing
d. Learning & Re-innovation
8. The ability to comprehend the present and predict the future inevitably becomes limited because of this approach.
a. Incrementalist Strategy
b. Rationalist Strategy
c. Technological Advantage
d. Sustainability
9. Which is not the right mindset for innovation?
a. Innovation constantly needs new ideas to change concepts and to optimize strategies thus helping overcome obstacles.
b. Innovation ends with ideas that are realized.
c. Challenge the status quo consistently.
d. Innovation needs the diversity of various competencies and diverse ways of thinking.
10. David Teece and Gary Pisano's framework gives central importance to the dynamic capabilities of firms, and distinguishes all the following elements of a sound corporate innovation strategy, except:
a. competitive and national positions
b. technological paths
c. organizational and managerial processes
d. none of the above
11. This refers to a step-by-step modification of objectives and resources, in light of new evidence.
a. Rationalism
b. Incrementalism
c. Step-level approach
d. Ladderized approach
12. Which of the following does not influence the proper balance between and among centralization, decentralization, and external collaboration?
a. The firm's main technological trajectory
b. The religion of the majority of the firm's key personnel
c. The degree of maturity of the technology
d. Corporate strategic style
23. Which of the following are the main national factors that influence the rate and direction of technological innovation in a country?
I. Institutions of corporate governance
II. Competencies in production and research
III. National market incentives and pressures
24. Foreign systems of innovation are vital because:
a. They will be the sources of firms with a strong capacity to compete through innovation.
b. They are also potential sources of improvement in the corporate management of innovation, and in national systems of innovation.
c. Firms can benefit more specifically from the technology generated in foreign systems of innovation.
d. All of the above
25. This term goes beyond the routine collection of publicly available information. It consists of comparisons amongst competitor companies on specific dimensions of corporate performance– beyond financial performance – with the purpose of identifying and catching up with best practice.
a. Information Gathering
b. Data Collection
c. Benchmarking
d. Imitation
26. David Teece argues that the capacity of the firm to appropriate the benefits of its investment in technology depends on what factor/s?
a. The firm’s capacity to translate its technological advantage into commercially viable products or processes.
b. The firm’s capacity to defend its advantage against imitators.
c. Both A and B
d. Neither A nor B
27. Which of the following statements relating to the factors which influence the firm’s capacity to benefit commercially from its technology is incorrect?
a. Secrecy is considered an effective form of protection by industrial managers, especially for process innovations.
b. The effective commercialization of an innovation very often depends on assets (or competencies) in production, marketing, and after-sales to complement those in technology.
c. The widespread acceptance of a company’s product standard widens its own market and weakens barriers against competitors.
d. Product complexity is recognized by managers as an effective barrier to imitation.
28. An innovative medium-sized food producer is conducting a study on the feasibility of a plant-based meat product line in the Philippines, to compete with Quorn, Veega, unMEAT, etc. As the financial analyst, you estimate an average monthly sales volume of 10,000* packs of plant-based Hungarian sausage, 20,000* packs of plant-based burger patties, and 25,000* packs of plant-based nuggets for the first year of operations, and an increase of 50 packs per day for each variant each year for the next 10 years. You begin to analyze the impact of the quantities of plant-based meat products sold to the company's overall profitability, asking questions like "What if * increases by 5,000 or 10,000 monthly?" and embedding such in the financial model. You are most likely performing...
a. Incrementalism
b. Sales Optimization
c. Sensitivity Analysis
d. Decentralization
29. Which of the following is/are major efficiency advantages in the geographic concentration in one place of strategic R&D for launching major new products and processes?
a. Dealing with unforeseen problems, since proximity allows quick, adaptive decisions.
b. Integrating R&D, production and marketing, since proximity allows integration of tacit knowledge through close personal contacts.
c. All of the above
d. None of the options
30. The type of innovation as classified to the types of issues they solve aims to improve the betterment of existing capabilities in existing markets.
a. Breakthrough Innovation
b. Sustaining Innovation
c. Disruptive Innovation
d. Basic Research
31. Exploring and selecting the most suitable response to the environment triggers which fit the strategy and the internal resource base/ external technology network is ______?
a. Acquiring
b. Choosing
c. Recognizing
d. Aligning
32. Which statement is not true about partial thinking?
a. Innovation as a product or process only, without recognizing the interrelationship between the two.
b. Innovation as a linear ‘technology push’ process or one in which the market can be relied upon to pull through innovation.
c. Innovation as a total change rather than as part of a wider system.
d. Innovation in terms of major ‘breakthroughs’- and ignoring the significant potential of incremental innovation.
33. According to Porter, the goal of competitive strategy is to find a position in an industry where a company can best defend itself against the ff. forces. Which is not included?
a. Threat of new entrants
b. Bargaining power of supplies and buyers
c. Rivalry among existing competitors
d. Threat of substitute products or services
34. Which statement is not true about component and structural innovation?
a. In Zone 1 or incremental innovation, there is a clear, steady-state improvement to products or processes and uses knowledge which is already available.
b. In Zone 2 or modular innovation, there is a significant change in one element affecting the overall architecture to change as well.
c. In Zone 3 or discontinuous innovation, neither the end state nor the ways to succeed is unclear.
d. In Zone 4 or architectural innovations, it is heavily challenged in reconfiguring knowledge sources that result in possible creation of new products or ideas.
35. Which is not an important agenda in incremental innovation?
a. Competitiveness
b. Affordability
c. Accountability
d. Knowledge
36. A business model that targets new customers that had not been in the market, or low-end consumers that couldn’t afford to buy the products.
a. Innovative Business Model
b. Social Enterprise Model
c. Direct-to-Consumers Business Model
d. Blockchain-based Business Model
37. Which is not an external source of discontinuity?
a. Emerging political rules
b. Shifts in techno-economic paradigm.
c. New technology
d. Change of management
38. This is where we incorporate significant change in one element, but the overall model remains the same. There is a need to learn new knowledge but only within an established and clear framework of sources and users.
a. Incremental Innovation
b. Modular Innovation
c. Discontinuous Innovation
d. Architectural Innovation
39. A type of innovation that focuses on the changes in the underlying mental models which frame what the organization does.
a. Product Innovation
b. Process Innovation
c. Position Innovation
d. Paradigm Innovation
40. Five Senior BSMA Class Presidents are comparing microelectronics revolution vis-à-vis Information Technology (IT) revolution.
Deo: The microelectronics revolution is about designing and producing electronic chips, and the IT revolution about producing software.
Rafa: Microelectronics is located firmly in manufacturing, and principally involves the highly sophisticated and demanding design and manufacturing of hardware. It opens up technological opportunities mainly for firms in– or close to – the electronics industry.
Felix: Focusing on software, IT involves not only the design and manufacturing function, but also the administration, co-ordination and distribution functions. It opens up technological opportunities in all sectors in both manufacturing and services.
John and Danielle: Since chip manufacture is a large-scale activity undertaken by well-established manufacturing firms, it is clearly visible in a whole range of published statistics. Software development, on the other hand, is often hidden away either in small and specialized firms in the service sector, or embedded in large organizations in sectors like retailing and finance, and is therefore hardly visible in established statistics.
Whose statement is incorrect?
a. Marlou's
b. Kyla’s
c. Alfonso’s
d. None
41. Which is a characteristic of corporate investments in innovative activities?
a. They are uncertain, so that success cannot be assured.
b. They involve similar stages that have identical outputs that require the same methods of evaluation.
c. Many of the variables in an evaluation can be reduced to a reliable set of figures to be plugged into a formula, relying less on expert judgments.
d. All the options
42. All the following describe how tasks of innovation strategy are accomplished in small firms, except:
a. Integrating technology with production and markets involves a deliberate organizational design
b. New technical knowledge is monitored and assimilated through trade and technical journals, rather than through their own R&D division.
c. Judgments on the learning benefits of investments in technology are based on qualifications and experience of senior management.
d. Matching strategic style with technological opportunities is based on the qualifications of managers and staff.
43. It refers to the transfer of responsibility for planning, management, and resource raising and allocation from a central governing body (e.g. corporate headquarters) to the smaller units within the organization (e.g. business unit, division).
a. Substitution
b. Sharing
c. External Collaboration
d. Decentralization
44. One of the key tenets of Hamel and Prahalad's theory on competencies is that the identification and development of a firm's core competencies depends on its strategic architecture, defined as a road map of the future that identifies which core competencies to build and their constituent technologies...
What is a prominent weakness of depending on a strategic architecture?
a. Possibilities of product diversification is considered.
b. Unavoidable uncertainties in the development of future competencies, and the consequent need for experiment and experience are neglected.
c. Unnecessary costs are recognized.
d. None of the above
45. These strategies are reflected in a strong administrative monitoring function in corporate HQ, and an expectation of high, short-term financial return.
a. Financial control
b. Differentiation
c. Strategic control
d. Strategic planning
46. Which of the following is the most important factor influencing the decision where to locate R&D globally?
a. Availability of critical competencies for the project
b. Costs of internal transactions
c. External sources of technical and market knowledge
d. International credibility of the R&D manager responsible for the project
47. ‘Few companies are likely to build world leadership in more than five or six fundamental competencies. A company that compiles a list of 20 to 30 capabilities has probably not produced a list of core competencies.’ The previous statement indicates that core competencies require __________.
a. Focus
b. Differentiation
c. Love
d. Leadership
48. This main source of core rigidity occurs when knowledge extension flows from usual paths rather than creating new options for the firm.
a. limited problem-solving due to path dependency
b. inability to innovate due to a competency trap
c. inability to experiment generating new knowledge
d. inability in importing knowledge from outside
49. Generally, which of the following does not describe R&D activities at the corporate level?
a. Long time horizons
b. Slow learning feedback loops
c. Strong internal linkages
d. Strong linkages to external knowledge sources
18. Michelle, a line manager on the production floor at AUT Industries, is an entry-level manager. Michelle has a strong commitment to the AUT's vision and mission. She has good relationships with workers on her line as well as with employees throughout AUT. Michelle can make decisions on the fly to keep the line moving, and other line managers often ask for her help in troubleshooting different situations. Which of the following best characterizes Michelle?
a. Michelle is a strategic leader.
b. Michelle is assuming inappropriate responsibility considering her position in the firm.
c. Michelle is likely to be promoted into an upper-management position where she would become a strategic leader.
d. If Michelle were using these same skills to determine strategy, perhaps in the finance department rather than on the production line, she would be considered a strategic leader.
19. Effective strategic leaders emerge on the basis of their:
a. capabilities and accumulation of human capital and skills over time.
b. single-minded focus on strategy formation.
c. aptitude for strategy implementation.
d. focus on innovation.
20. Organizational culture refers to:
a. an integrated and coordinated set of commitments and actions designed to exploit core competencies and gaina competitive advantage.
b. the complex set of ideologies, symbols, and core values that are shared throughout the firm.
c. a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
d. how a firm acquires, uses, and develops its various resources and capabilities.
21. Managers must adopt a new mind-set that values __________ and the challenges that evolve from constantly changing conditions.
a. flexibility
b. innovation
c. speed
d. All of these are correct.
22. A __________ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
a. goal
b. strategy
c. tactic
d. mission
23. A business-level strategy describes:
a. the businesses in which the company intends to compete.
b. all policies and procedures used in functional departments.
c. the actions a firm takes to exploit its competitive advantage over rivals.
d. a firm's resources, intent, and mission.
24. A major assumption about the strategic management process is that it is:
a. inspired.
b. team-based.
c. rational.
d. inclusive.
25. When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has created a(n):
a. strategic mission.
b. inspiring vision.
c. core competence.
d. sustainable market niche
26. To cope with hypercompetition, firms need to develop __________ through continuous learning.
a. competitive resilience
b. strategic flexibility
c. strategic power
d. competitive dominance
27. A company’s ability to acquire knowledge is:
a. less important in the twenty-first century than in previous periods of business history.
b. an increasingly valuable source of competitive advantage.
c. not considered an asset or resource for businesses.
d. only important in high-technology industries
28. Henry Ford once said,“If I had asked people what they wanted, they would have said faster horses.” The invention of the car is an early example of:
a. the march of globalization.
b. rapid technological diffusion.
c. disruptive technologies.
e. products that were not imitated by competitors.
29. New markets created by the technologies underlying the development of products such as iPods, iPads, and Wi-Fi area result of:
a. disruptive technologies.
b. global competition.
c. knowledge intensity.
e. hypercompetition.
30. A competitive advantage:
a. can be permanent if the firm has successfully implemented the strategic management process.
b. entails reducing investors' risk to near zero.
c. can be identified when competitors are unable to duplicate a strategy or find it too costly to try to imitate.
d. exists when competing firms are unable to find investors.
31. A firm has achieved __________ when it successfully formulates and implements a value-creating strategy.
a. strategic competitiveness
b. a permanently sustainable competitive advantage
c. substantial returns
d. legal and ethical core values
32. Strategy formulation and implementation must be simultaneously integrated for a successful strategic management process.
a. True
b. False
33. The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.
a. True
b. False
34. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
a. True
b. False
35. Which statement is not true about partial thinking?
a. Innovation as a product or process only, without recognizing the interrelationship between the two.
b. Innovation as a linear ‘technology push’ process or one in which the market can be relied upon to pull through innovation.
c. Innovation as a total change rather than as part of a wider system.
d. Innovation in terms of major ‘breakthroughs’- and ignoring the significant potential of incremental innovation.
36. According to Porter, the goal of competitive strategy is to find a position in an industry where a company can best defend itself against the ff. forces. Which is not included?
a. Threat of new entrants
b. Bargaining power of supplies and buyers
c. Rivalry among existing competitors
d. Threat of substitute products or services
37. A type of innovation that refers to the changes in the ways in which they are created and delivered.
a. Product Innovation
b. Process Innovation
c. Position Innovation
d. Paradigm Innovation
38. A type of innovation that refers to the changes in the underlying mental models which frame what the organization does.
a. Product Innovation
b. Process Innovation
c. Position Innovation
d. Paradigm Innovation
39. Which is NOT an importance of Incremental Innovation:
a. Gradual efficiency gains
b. Reduced risk
c. Creating product families
d. Reduced controls
40. Who developed or established the five generations of innovation models?
a. Roy Rothwell
b. Michael Porter
c. Joseph Schumpeter
d. Gary Hamel
41. This is a part of the innovation process model where you turn potential ideas into reality
a. Searching Phase
b. Selection Phase
c. Implementation Phase
d. None of the above
42. Which of the following is not part of generic market strategies according to Porter?
a. Overall cost leadership.
b. Product differentiation.
c. Differentiation destruction.
d. Cost focus.
43. Which is not part of Michael Porter's Five Forces Framework
a. Bargaining Power of Buyers
b. Threat of New Entrants
c. Threat of Complementary Products or Services
d. Rivalry Amongst Established Firms
44. Higher priority to R&D than to dividends for shareholders is related to what variety?
a. Anglo-Saxon
b. Nippon–Rhineland
c. Hunsrück-Kreis
d. Rhineland-Palatinate
45. Which of the following technology intelligence methods is prevalent in the Pharmaceutical Sector?
a. Scenario analysis
b. Patent citation
c. Lead user analysis
d. Quality function deployment
46. The following are factors which influence the firm’s capacity to benefit commercially from its technology, except:
a. Standards
b. Strength of patent protection.
c. Substitute assets.
d. Lead times and after-sales service.
47. This person said that the most significant of intangible resources are Company Reputation and Employee Know-How
a. Richard Hall
b. Sidney Winter
c. Flavr Savr
d. David Mowery
48. What is the brand of the tomato that was the first genetically engineered crop product to be commercialized.
a. Flavr Savr
b. Heinz
c. UFC
d. Del Monte
49. Which is not a main factor influencing the decision where to locate R&D globally:
a. the availability of critical competencies for the project
b. the international credibility (within the organization) of the R&D manager responsible for the project.
c. The importance of internal sources of technical and market knowledge
d. Cost and disruption of relocating key personnel to the chosen site.
50. This dimension in the organizational location of a firm's R&D activities is determined mainly by the importance of the main organizational interface:
a. Funding
b. Physical Location
c. Income
d. Organizational Structure
51. Which is not one of the four sets of factors that will influence the proper balance between corporate and divisional initiatives in R&D
a. the firm's main technological trajectory
b. the degree of maturity of the technology
c. corporate strategic style
d. links to 'new science'-based technologies
e. none of the above
52. Which is not a solution in terms of how managers cope with difficulties in allocating resources to technological activities:
a. Encourage incrementalism.
b. Use complex rules models for allocating resources.
c. Seek the reduction of key uncertainties before any irreversible commitment to full-scale.
d. recognize that different types of R&D should be evaluated by different criteria.
53. Which of these would not normally be considered an incremental innovation?
A) An electric car
B) A low-fat hamburger
C) Faster train journeys through better signalling
D) Chicken and onion-flavoured potato chips
54. All the following are typical examples of “technology” or “knowledge” push except for?
A) The Walkman personal radio
B) Radar
C) Online banking
D) YouTube and related video sharing Internet sites
55. Innovation can only happen in the private sector because the public sector is not concerned with making profits or competition between firms.
A) True
B) False
56. Which of the following factors is not often associated with successful innovating organizations? (Several choices may be correct.)
A) Rich external linkages and networks
B) Age of the firm—the older the better
C) Supportive organizational climate with structures and incentives for innovation
D) Mechanisms for strategic selection of innovation options
57. Innovation can take many forms, all involving a change of some kind. Which of the following is NOT a form of innovation?
A) Product (or service) innovation—changes in what is offered to the world
B) Petroleum innovation—amount spent monthly by a business on its fuel costs
C) Process innovation—changes in the way offerings are created and delivered
D) Position innovation—changes in the context in which innovations are launched
58. Which of the following is not included as a radical innovation?
A) The electric light bulb
B) The laser
C) The Fiber-tip pen
D) The photocopier
59. Which of the following is NOT a source of strategic advantage through innovation?
A) Complexity—offering something which others find difficult to master
B) Legal protection of intellectual property— offering something which others cannot do unless they pay a license or other fee
C) Scale of investment in R&D
D) Novelty in product or service offering—offering something no one else can
60. Peer-to-peer networking of the kind pioneered by Napster and now forming the basis of Internet file sharing is an example of radical innovation.
A) True
B) False
61. Haagen-Dazs ice cream was created to open a new market among adults for what had traditionally been seen as a children's food. This is an example of position innovation. A) True
B) False
62. Innovation can take many forms. Running a hospital booking system that reduces patient waiting time is an example of which kind of innovation?
A) Process
B) Position
C) Product
D) Paradigm
63. Which of the following is NOT an example of product innovation?
A) A new toothpaste
B) A new car design
C) A new version of the iPod
D) Computer-control of manufacturing operations
64. Successful innovation depends on having patent protection for the core idea.
A) True
B) False
65. Innovation always requires a radical flash of insight—a 'eureka!' moment.
A) True
B) False
66. A type of innovation that focuses on the changes in the underlying mental models which frame what the organization does.
A) Product Innovation
B) Process Innovation
C) Position Innovation
D) Paradigm Innovation
67. Which of the following would not normally be considered a radical innovation?
A) The jet turbine engine
B) Integrated circuits
C) Increased colour choice on the Volkswagen 'Beetle' car
D) Antibiotic drugs
68. Social entrepreneurship does not concern itself with commercial questions.
True
*False
69. There is no way to resolve the conflict between commercial business goals and those of social innovation.
True
*False
70. The triple bottom line is:
A) markings on a ship to show how heavily laden it is
B) a bookkeeping convention to minimise accounting mistakes
C) an accounting system suitable for joint ventures between firms
D) a company reporting framework designed to consider not just financial outcomes but also environmental and social performance
71. Which of these is NOT a difference between social entrepreneurs and commercial entrepreneurs?
A) Social entrepreneurs are less concerned with independence and wealth, and more on social means and ends.
B) Social entrepreneurs are older than commercial entrepreneurs.
C) Social entrepreneurs place less emphasis on short-term growth and long-term harvesting of the venture, and more concern on long-term change and enduring heritage.
D) Social entrepreneurs place less reliance on the firm and management team to execute the venture, and greater reliance on a network of stakeholders and resources to develop and deliver change.
72. While empathy and a need for social justice may be necessary attributes of a social entrepreneur, they are not sufficient.
*True
False
73. Which of the following statements is not correct?
A) There is no certain recipe for success, it depends on variations, circumstances, backgrounds, goals, opinions.
B) Not every innovation succeeds and fail; some learned the ways of managing and responding to the odds.
C) Innovation is not a management question; choices to be made about the resources and their disposition and coordination are just options.
D) Longevity of firms is due to the development of capacity to innovate in a continuing basis.
74. These pertain to the formal and informal structures, procedures, and processes which describe the way things are being done in an organization.
A) Routines
B) Artefacts
C) Policy Manuals
D) Ethics and Governance Manuals
75. All the following are ways to manage innovation save for:
A) Networking
B) Knowledge management
C) Total Quality management
D) Business process outsourcing
76. The opportunity to learn from progressing through cycles to build knowledge base and improve ways to manage processes is called:
A) Searching
B) Selecting
C) Implementing
D) Learning and Re-innovation
77. According to Rothwell’s Five Generation of Innovation Models, which involves system integration and extensive networking, flexible and customized response and serves continuous innovation?
A) Technology Push
B) Network Model
C) Market Pull
D) Coupling Model
78. Network building to support innovation is based on developing close and strong ties. Which among the routines of management archetypes does the statement belong to?
A) Strategic Decision Making
B) Interpretative Schema
C) Operating Routines
D) Strategy Formulation