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Samenvatting boek Strategic management of technological innovation
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This is a summary of Schilling's book Strategic Management of Technological Innovation (6th edition).
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Complete Test Bank Strategic Management of Technological Innovation 6th Edition SCHILLING Questions & Answers with rationales (Chapter 1-13)
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Strategic Management of Technology and Innovation
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Some examples from this set of practice questions
1.
1.Virtual Inc., a manufacturing company, has recently entered into the cell phone industry. This industry is characterized by rapid technological innovations. Which of the following is an implication for Virtual Inc. (Chapter 1Strategic importance of innovation, Lecture 1)? A. The life cycle of its cell phones will be very long. B.It will face rapid product obsolescence. C. It will face low market segmentation in the cell phone industry. D. It will face lower need for product differentiation.
Answer: B. It will face rapid product obsolescence.
2.
2.Organizations that manufacture products such as e-books for e-readers, or DVDs forDVD players are examples of _____. (Lecture 1Strategic importance of innovation, Chapter 2) A. moderators B. lead users C. complementors D. incubators
Answer: C. complementors
3.
The ability of an organization to recognize, assimilate, and utilize new knowledge is its: (Lecture 2 Innovation types and technology trajectories, Chapter 2) A. cognitive ability B. absorptive capacity C. organizational agility D. reasoning ability
Answer: B. absorptive capacity
4.
Which of the following is true of s-curves in technological improvement? (Chapter 3, Lecture 2Innovation types and technology trajectories) A. They are obtained by plotting the cumulative number of adopters of the technology against time. B. They typically show that technology goes through initial accelerated improvement, then slow improvement, then diminishing improvement. C. S-curves in technology diffusion and s-curves in technology performance are fundamentally the same processes and are overlapping accordingly. D. The s-curves flatten when the cost of each marginal improvement increases and when diminishing returns to effort start to set in.
Answer: D. The s-curves flatten when the cost of each marginal improvement increases and when diminishing returns to effort start to set in.
5.
Which of the following is true of externalities (Lecture 3Innovation & organizational environment, Chapter 1 & Chapter 4)? A. All externalities are negative in nature. B. They are only borne by individuals responsible for creating them. C. Technological innovation results in complete eradication of negative externalities. D. Externalities can be in the form of benefits reaped by individuals.
Answer: D. Externalities can be in the form of benefits reaped by individuals.
6.
There are several limitations in using the s-curve as a prescriptive tool in innovation management. Which of the following strategies are in line with Schilling’s recommendations (Chapter 4, Lecture 3 Innovation & organizational environment): (1) Companies may delay implementing a new technology if they lack the complementary resources (2) Companies may delay implementing a new technology if the majority of their revenue relies on products with an incumbent technology A.(1) is true, (2) is untrue B.(2) is true, (1) is untrue C.(1)& (2) are true D.(1) & (2) are untrue
Answer: A.(1) is true, (2) is untrue
7.
Strategy formulation relies on internal and external analysis (Lecture 4 & Chapter 6 ‘Defining the organization’s strategic direction’). Which of the following statements is FALSE? A.Internal analysis considers a firm’s core competencies B.In external analysis, firms identify opportunities and threats in its environment C.Firm’s core rigidities are a type of competence that should direct a firm’s desired strategic position D.The resource and capability gap can be determined when contrasting the firm’s desired strategic position with its current position
Answer: C.Firm’s core rigidities are a type of competence that should direct a firm’s desired strategic position
8.
In the Back Bay Battery simulation, most profit could be obtained by investing at the same time in mature NiMH technology and emerging Ultracapacitor technology. This is NOT an example of (Lecture 4 & Chapter 6 ‘Defining the organization’s strategic direction’): A. structural ambidexterity B. sequential ambidexterity C. contextual ambidexterity D. simultaneous ambidexterity
Answer: B. sequential ambidexterity
9.
What is true about effectuation and causation?(Lecture 5 Allocating resources for innovation) A. Affordable loss is a criterion for causation logic B. Expected returns is a criterion for causation logic C. Competitive analysis is typical for effectuation logic D. Reducing uncertainty is typical for effectuation logic
Answer: B. Expected returns is a criterion for causation logic
Content preview
Strategic Management of TechnologicalInnovation
1 Introduction
The Importance of Technological Innovation
Technological innovation: The act of introducing a new device, method, or
material for application to commercial or practical objectives.
In many industries technological innovation ixs now the most important driver of
competitive success. Firms in a wide range of industries rely on products
developed within the past five years for almost one-third of their sales and profits.
The increasing importance of innovation is due in part to the globalization of
markets. Foreign competition has put pressure on firms to continuously innovate
in order to produce differentiated products and services. Introducing new
products helps firms protect their margins, while investing in process innovation
helps firms lower their costs.
While producing multiple product variations used to be expensive and
time-consuming, flexible manufacturing technologies now enable firms to
seamlessly transition from producing one product model to the next, adjusting
production schedules with real-time information on demand. Firms further reduce
production costs by using common components in many of the models.
The product life cycles (the time between a product’s introduction and its
withdrawal from the market or replacement by a next-generation product) have
become as short as 4 to 12 months for software, 12 to 24 months for computer
hardware and consumer electronics, and 18 to 36 months for large home
appliances. This spurs firms to focus increasingly on innovation as a strategic
imperative - a firm that does not innovate quickly finds its margin diminishing as
its products become obsolete.
The Impact of Technological Innovation on Society
Innovation enables a wider range of goods and services to be delivered to people
worldwide. The aggregate impact of technological innovation can be observed by
looking at gross domestic product (GDP). The gross domestic product of an
economy is its total annual output, measured by final purchase price.
Technological innovation increased the amount of output achievable from a given
quantity of labor and capital. Technological innovation has a number of important
effects on society, including fostering increased GDP, enabling greater
communication and mobility and improving medical treatments.
,Sometimes technological innovation results in negative externalities, including
pollution, resource depletion, and other unintended consequences of
technological change.
Externalities: Costs (or benefits) that are borne (or reaped) by individuals other
than those responsible for creating them. Thus, if a business emits pollutants
in a community, it imposes a negative externality on the community members;
if a business builds a park in a community, it creates a positive externality for
community members.
Technological innovation is the creation of new knowledge that is applied to
practical problems. Sometimes this knowledge is applied to problems hastily,
without full consideration of the consequences and alternatives, but overall it will
probably serve us better to have more knowledge than less.
,Innovation by Industry: The Importance of Strategy
The majority of effort and money invested in technological innovation comes from
industrial firms. However, in the frenetic race to innovate, many firms charge
headlong into new product development without clear strategies or
well-developed processes for choosing and managing projects. Such firms
often initiate more project than they can effectively support, choose projects
that are a poor fit with the firm’s resources and objectives, and suffer long
development cycles and high project failure rates as a consequence.
While government plays a significant role in innovation, industry provides the
majority of R&D funds that are ultimately applied to technological innovation.
The Innovation Funnel
Most innovative ideas do not become successful new products. The innovation
process is often conceived of as a funnel, with many potential new product
ideas going in the wide end, but very few making it through the development
process.
The Strategic Management of Technological Innovation
Improving a firm’s innovation success rate requires a well-crafted strategy.
A firm’s innovation projects should align with its resources and objectives,
leveraging its core competencies and helping it achieve its strategic intent.
A firm’s organizational structure and control systems should encourage the
generation of innovative ideas while also ensuring efficient implementation.
A firm’s new product development process should maximize the likelihood of
projects being both technically and commercially successful. To achieve these
things, a firm needs:
a. an in-depth understanding of the dynamics of innovation
b. a well-crafted innovation strategy
c. well-designed processes for implementing the innovation strategy.
, PART ONE
Industry Dynamics of Technological Innovation
2 Sources of Innovation
Innovation: The practical implementation of an idea into a new device or
process. Innovation can arise from many different sources.
● It can originate with individuals, as in the familiar image of the lone inventor or
users who design solutions for their own needs.
● Innovation can also come from the research efforts of universities,
government laboratories and incubators, or private nonprofit organizations.
● Firms are well suited to innovation activities because they typically have
greater resources than individuals and a management system to marshal
those resources toward a collective purpose. Firms also face strong
incentives to develop differentiating new products and services, which may
give them an advantage over non-profit or government-funded entities.
● An even more important source of innovation is the linkage between these
sources. Networks of innovators that leverage knowledge and other resources
from multiple sources are one of the most powerful agents of technological
advance.
○ We can thus think of sources of innovation as composing a complex
system wherein any particular innovation may emerge primarily from
one or more components of the system or the linkages between them.
Innovation begins with the generation of new ideas: something imagined or pictured
in the mind. The ability to generate new and useful ideas is termed creativity.
Creativity is defined as the ability to produce work that is useful and novel. Novel
work must be different from work that has been previously produced and surprising
in that it is not simply the next logical step in a series of known solutions.
Creativity
Individual Creativity
An individual’s creative ability is a function of his or her intellectual abilities,
knowledge, style of thinking, personality, motivation, and environment. The most
important intellectual abilities for creative thinking include the ability to look at
problems in unconventional ways, the ability to analyze which ideas are worth
pursuing and which are not, and the ability to articulate those ideas to others and
convince others that the ideas are worthwhile. The impact of knowledge on creativity
is somewhat double-edged. If an individual has too little knowledge of a field, he or
she is unlikely to understand it well enough to contribute meaningfully to it. On the
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