FREE Master of International Business: Global Management of Innovation & Knowledge Questions and Answers

Question 1

Innovation is characterized by:

Accepted Answer

the commercialization of a new product or process.

Answer

Innovation is distinct from invention; it refers to the successful commercialization or implementation of a new idea, product, process, or service. While invention is about creating something new, innovation is about bringing that novelty to market and making it useful or available to others. It involves the practical application and diffusion of new concepts.

Question 2

Procedure innovation includes:

Accepted Answer

the implementation of a new or improved production method.

Answer

Process innovation specifically refers to the implementation of a new or significantly improved production or delivery method. This can involve changes in techniques, equipment, or software, aimed at improving efficiency, quality, or cost-effectiveness. It focuses on how products or services are created and delivered, rather than on the products or services themselves.

Question 3

Innovation can contribute to the creation of a transient competitive advantage when

Accepted Answer

barriers to imitation are low and intellectual property rights are difficult to enforce.

Answer

A transient competitive advantage is short-lived, and this occurs when an innovation can be easily copied. If barriers to imitation are low, competitors can quickly replicate the innovation. Furthermore, weak intellectual property rights offer little legal protection, allowing rivals to erode the initial advantage rapidly and prevent sustained competitive differentiation.

Question 4

What would you anticipate to occur after the establishment of a dominant design in the product life cycle?

Accepted Answer

Emphasis on process innovation rather than product innovation.

Answer

Once a dominant design is established, the market has largely settled on the core features and architecture of a product. This shifts the focus of competition from product differentiation to efficiency and cost reduction. Consequently, firms emphasize process innovation to optimize production, improve quality, and lower costs, rather than investing heavily in fundamentally new product designs.

Question 5

In comparison to newer businesses, established businesses excel at:

Accepted Answer

innovation which is competence-enhancing.

Answer

Established businesses possess deep knowledge, existing infrastructure, and well-developed processes related to their current operations. Competence-enhancing innovations build upon these existing strengths, allowing these firms to leverage their accumulated expertise and resources effectively. In contrast, disruptive or competence-destroying innovations often require new capabilities that established firms find challenging to adopt due to organizational inertia.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

FREE Master of International Business: Global Management of Innovation & Knowledge Questions and Answers