FREE Master of International Business: Global Management of Innovation & Knowledge Questions and Answers
Innovation is characterized by:
The commercialization of a new product or process is indeed one aspect of innovation, innovation itself is a broader concept that encompasses various activities and outcomes. Innovation is characterized by the introduction and implementation of novel ideas, methods, products, or processes that result in positive change and create value.
Innovation can contribute to the creation of a transient competitive advantage when
Innovation can indeed contribute to the creation of a transient competitive advantage when barriers to imitation are low, and intellectual property rights are difficult to enforce. A transient competitive advantage is a temporary period during which a firm enjoys a competitive edge over its rivals due to a particular innovation or advantage. However, this advantage is not sustainable over the long term because competitors can easily imitate or replicate the innovation, eroding the advantage.
What are the four universal tactics for being socially responsive?
The four universal tactics for being socially responsive are: Reaction: Addressing social issues only when forced to do so due to external pressures. Defence: Taking proactive measures to protect the company's interests and reputation. Accommodation/Reinvestment: Voluntarily investing in social initiatives and CSR programs. Proaction: Actively seeking and addressing social issues before they become significant concerns.
What major issue prevents non-traditional partnerships from becoming successful?
The lack of trust between partners is a major issue that prevents non-traditional partnerships from becoming successful. Trust is crucial for effective communication, resource sharing, conflict resolution, and alignment of goals in such partnerships. Building trust through open communication, transparency, and mutual respect is essential for their success.
The main obstacle to knowledge transfer in global corporations is:
One of the main obstacles to knowledge transfer in global corporations is the challenge of transferring tacit knowledge across borders. Tacit knowledge refers to knowledge that is not easily codified or written down and is often gained through personal experience, intuition, or practice.
Innovation is more likely to be outsourced worldwide where:
Innovation is more likely to be outsourced worldwide when innovations are autonomous. This means that the innovation process can be carried out independently by external entities without significant involvement or control from the company seeking the innovation.
Which three stages of innovation are there?
These three stages represent a continuum of innovation, from incremental improvements to revolutionary changes, and successful companies often navigate through all three stages to sustain growth and competitiveness.
Procedure innovation includes:
Procedure innovation refers to the implementation of a new or improved production method. It involves making changes to the way a company carries out its production processes to enhance efficiency, reduce costs, improve quality, or increase productivity.
Who claimed that a company's main social responsibility is to maximize profits?
The claim that a company's main social responsibility is to maximize profits is often attributed to the economist Milton Friedman. In his article titled "The Social Responsibility of Business Is to Increase Its Profits," published in The New York Times Magazine in 1970, Friedman argued that a corporation's primary responsibility is to its shareholders and that the pursuit of profit within the boundaries of the law is the appropriate goal for businesses. He contended that companies should not divert resources to pursue social or environmental objectives, as these are the responsibilities of individuals and government institutions.
In comparison to newer businesses, established businesses excel at:
Competence-enhancing innovation refers to the type of innovation that builds upon a firm's existing knowledge, capabilities, and resources. Established businesses typically have well-established processes, accumulated experience, and a strong organizational infrastructure that allows them to leverage their existing competencies to drive innovation.
Which of the following is an instance of the development of a new market?
The creation of microfinance services to poor creditors by a bank is an instance of the development of a new market. Microfinance services involve providing financial services, such as small loans and savings accounts, to low-income individuals or small entrepreneurs who typically do not have access to traditional banking services. This represents the development of a new market segment, as the bank is targeting a previously underserved or unbanked population with specialized financial products tailored to their needs. By offering microfinance services, the bank is tapping into a new market opportunity and creating a niche for itself in the financial services industry.
What distinguishes the stakeholder approach as a whole?
The stakeholder approach to business distinguishes itself by recognizing that a corporation's responsibilities extend beyond just its shareholders (owners or investors). Instead, it acknowledges that many different groups, known as stakeholders, have a legitimate interest in the company and can significantly influence or be impacted by its actions and decisions.
Which of the following is useful in a standards conflict?
Early Mover Advantage: Being the first to establish a dominant position by adopting and promoting a particular standard can give a company a significant advantage. Early movers can set the de facto standard, gaining market share and customer loyalty before competitors catch up.
What benefits might there be in involving abroad subsidiaries in R&D projects?
Involving foreign subsidiaries in R&D projects offers several benefits to global corporations: Local Market Insights: Access to understanding specific market needs and preferences in different regions. Access to Local Talent: Utilizing diverse skills and expertise available in foreign markets. Cost Efficiencies: Potential cost savings in countries with lower labor costs. Faster Time-to-Market: Round-the-clock R&D activities across time zones accelerate product development. Global Innovation: Diverse perspectives enrich overall innovation capabilities. Local Regulatory Compliance: Ensuring new products meet local regulations and standards. Risk Diversification: Spreading innovation risks across multiple projects. Enhanced Creativity and Problem-Solving: Diverse teams stimulate innovative approaches. Faster Learning and Knowledge Transfer: Strengthening the overall knowledge base of the organization.
What markets are likely to experience network effects?
Network effects are likely to be present in markets subject to increasing returns, Tippy' markets, and hi-tech product markets. These markets often exhibit characteristics that facilitate the positive feedback loop of network effects, leading to increased value and utility for users as the size of the network grows.
What would you anticipate to occur after the establishment of a dominant design in the product life cycle?
After the establishment of a dominant design in the product life cycle, there is typically an emphasis on process innovation rather than product innovation. When a dominant design emerges in a particular product category, it becomes the widely accepted and standardized configuration of the product. Customers and competitors start adopting this dominant design as the standard, leading to a more stable and less uncertain market environment. As a result, firms shift their focus from product innovation to process innovation.