Question 1

In general, radical innovations occur quickly and incremental innovations take a long time to develop.

Accepted Answer

Radical innovations, which represent breakthroughs and significant advancements, often take a long time to develop due to their complexity and the challenges involved in creating something entirely new. Incremental innovations, on the other hand, involve small improvements to existing products, processes, or services and typically occur more frequently and quickly as they build on existing knowledge and technology.

Question 2

Which of the following refers to the independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?

Accepted Answer

Autonomy refers to the independent action by an individual or team to bring forth a business concept or vision and carry it through to completion, emphasizing independence in the decision-making process.

Question 3

The benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies are known as

Accepted Answer

The benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies are known as first mover advantages.

Question 4

WestJet was cited by the text as being able to develop a toehold in Western Canada through

Accepted Answer

WestJet was able to develop a toehold in Western Canada through an aggressive market entry and competitiveness, which allowed it to quickly establish a strong presence in the region.

Question 5

The majority of new firms are low-budget start-ups financed through

Accepted Answer

The majority of new firms start with limited budgets and are typically financed through personal savings and contributions from family and friends, rather than through more formal and larger-scale financing options like IPOs, bank loans, or venture capital.

Question 6

Radical innovation often involves open-ended experimentation which can be very time consuming.

Accepted Answer

Radical innovation, which involves creating completely new products or processes, usually requires significant experimentation and exploration. This open-ended process can be time-consuming but is necessary for breakthroughs and new discoveries.

Question 7

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Accepted Answer

Strategic renewal and the pursuit of new venture opportunities are indeed the two primary aims of corporate entrepreneurship.

Question 8

The root of the word innovation is the Latin "novus," which means "sustainable."

Accepted Answer

The Latin root "novus" means "new," not "sustainable." Innovation is derived from this root, emphasizing the concept of newness or novelty.

Question 9

As an industry matures, there are greater opportunities for change and so innovations tend to be more radical.

Accepted Answer

As an industry matures, processes and products tend to become standardized, leading to incremental rather than radical innovations, as companies focus on efficiency and minor improvements.

Question 10

The 3M Corporation, one of the most highly innovative companies, uses corporate venturing activities to promote innovation. An advantage of this approach is that

Accepted Answer

Corporate venturing activities often position the ability to adapt and change as a core capability within a company, fostering an environment that encourages innovation and entrepreneurial thinking. This approach contrasts with environments where new ideas are discouraged, or where there is resistance to change.

Question 11

Process innovations are often associated with a low-cost leadership strategy.

Accepted Answer

Process innovations are focused on improving and streamlining internal operations and reducing costs. Therefore, they are often used by companies pursuing a low-cost leadership strategy to gain a competitive advantage by offering lower prices to consumers while maintaining profitability.

Question 12

Radical innovations often begin with a long period of exploration in which experimentation makes strict timelines unrealistic

Accepted Answer

Radical innovations require a phase of exploration where the outcomes are uncertain, making it difficult to adhere to strict timelines due to the need for experimentation and discovery.

Question 13

The term "strategic envelope" refers to the scope of a firm's innovation efforts.

Accepted Answer

The term "strategic envelope" refers to the boundaries or scope within which a firm aims to innovate or pursue strategic initiatives, guiding the direction and extent of its innovation efforts.

Question 14

Venture capital is

Accepted Answer

Venture capital is a subset of private equity, where investors provide capital to startups or small companies looking to expand but do not have access to equities markets.

Question 15

All of the following statements about innovativeness are , except

Accepted Answer

Innovativeness involves making decisions and taking risks, but it is not defined by doing so without certain knowledge of probable outcomes. Instead, it encompasses a firm's efforts to find new opportunities (B), involves creativity and experimentation (C), and is aimed at developing new products, services, and processes (D).

Question 16

Which of the following dimensions of entrepreneurial orientation is described as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"?

Accepted Answer

Proactiveness in entrepreneurial orientation refers to the ability to anticipate and act on future market opportunities, rather than reacting to events as they occur. It embodies a forward-looking perspective, aiming to lead rather than follow market trends.

Question 17

The term "innovations" refers primarily to inventions that use the latest technologies.

Accepted Answer

Innovations encompass not only the latest technological inventions but also new methods, ideas, or products that bring about change or improvement, regardless of the technology level.

Question 18

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should

Accepted Answer

One competitive aggressiveness technique is to enter markets with drastically lower prices. An example is California-based Zimbra, Inc. By using open-source software, it has become a leader in messaging and collaboration software. Its product costs about one third less than its direct competitor Microsoft Exchange. Zimbra now has over 60 million users.

Question 19

The discovery phase:

Accepted Answer

The discovery phase involves becoming aware of a new business concept, which is the initial step before further analysis or development.

Question 20

Which kind of new entry strategy sometimes involves filling a market space where the need has not previously been filled adequately?

Accepted Answer

The answer of Which kind of new entry strategy sometimes...

Quiz 12: Managing Innovation and Fostering Entrepreneurship