MIB Master of International Business: Global Management of Innovation & Knowledge 5

Question 1

Which theory argues that firms internationalize to exploit their firm-specific advantages, including proprietary technology and knowledge?

Accepted Answer

OLI (Eclectic) Paradigm

Answer

Dunning's OLI Paradigm explains FDI through Ownership (firm-specific advantages including knowledge), Location, and Internalization advantages.

Question 2

A global firm implements a 'hack-a-thon' across its subsidiaries in 12 countries simultaneously. The primary innovation management goal is:

Accepted Answer

Generating diverse ideas by leveraging geographically distributed talent

Answer

Global hack-a-thons tap into diverse cultural and professional perspectives across subsidiaries, producing a broader and more varied innovation pipeline than centralized R&D alone.

Question 3

What is the 'not-invented-here' (NIH) syndrome in corporate innovation?

Accepted Answer

Resistance to adopting external ideas due to internal bias favoring in-house developments

Answer

NIH syndrome causes teams to reject or undervalue external knowledge, even when superior to internal solutions, because of cultural preference for self-generated ideas.

Question 4

In an international joint venture focused on technology development, which factor most critically determines how knowledge is shared between partners?

Accepted Answer

The trust level and relational capital built between partner firms

Answer

Trust and relational capital reduce opportunistic behavior, enabling genuine knowledge sharing rather than strategic withholding between alliance partners.

Question 5

Which approach to global R&D organization assigns each subsidiary a specific technology domain for which it serves as the worldwide center of excellence?

Accepted Answer

Distributed mandate model

Answer

In a distributed mandate model, subsidiaries are granted global responsibility for specific technologies or product lines, becoming the network's recognized expert for those domains.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB Master of International Business: Global Management of Innovation & Knowledge 5