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86) How are firms pursuing a global business strategy different from firms pursuing a
multidomestic business strategy?
Difficulty: Moderate
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Synthesis
28
87) Define the term freeconomics. Briefly explain the different approaches of freeconomics.
Difficulty: Moderate
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
88) Compare and contrast firms pursuing a global business strategy and a transnational business
strategy.
Difficulty: Moderate
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Synthesis
29
89) According to ________, the number of transistors that could be squeezed onto a silicon chip
would double every 18 months.
A) Metcalfe's law
B) Megan's law
C) Murphy's law
D) Moore's law
E) Ashby's law
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
90) In the context of organizational requirements for innovation, to deploy innovative
information systems well, people in the organization must be willing to do whatever they can to
bypass and eliminate internal bureaucracy, set aside political squabbles, and pull together for the
common good. These requirements can be categorized as ________ requirements.
A) process
B) customer
C) resource
D) quality
E) risk tolerance
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
91) Organizations deploying innovative information systems must have the human capital
necessary to deploy the new systems. These requirements can be categorized as ________
requirements.
A) resource
B) process
C) risk tolerance
D) customer
E) quality
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
30
92) ________ are new technologies, products, or services that eventually surpass the existing
dominant technology or product in a market.
A) Constructive innovations
B) Adaptive innovations
C) Disruptive innovations
D) Facultative innovations
E) Extensive innovations
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
93) According to the disruptive growth engine, executive leadership will allow a firm to
________.
A) effectively identify and evaluate potential disruptive innovations
B) gain credibility and to bridge sustaining and disruptive product development
C) gain the greatest disruptive opportunities
D) build a disruptive team of expert innovators
E) educate those closest to customers and competitors in order to identify opportunities
Difficulty: Moderate
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
94) Which of the following statements is true about the e-business innovation cycle?
A) The vertical dimension of the cycle shows the life expectancy of a particular information
technology, and the horizontal dimension shows time.
B) The vertical dimension of the cycle shows the extent to which an organization derives value
from a particular information technology, and the horizontal dimension shows time.
C) The vertical dimension of the cycle shows the expected investments required for a particular
information technology, and the horizontal dimension shows time.
D) The vertical dimension of the cycle shows the efficiency of a particular information
technology, and the horizontal dimension shows life expectancy of that information technology.
E) The vertical dimension of the cycle shows the user-friendliness of a particular technology, and
the horizontal dimension shows the investment in that technology.
Difficulty: Moderate
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
31
95) In an e-business innovation cycle, after an organization scans the environment for new
emerging and enabling technologies, the next step is to ________.
A) create jobs, groups, and processes that are all devoted to scanning the environment
B) select the database and data storage advances
C) address the current opportunity to grab customers and market share
D) match the most promising new technologies with current economic opportunities
E) assess the value of the use of technology for customers and internal clients
Difficulty: Moderate
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
96) Risk tolerance for people within the organization should be low for the deployment of
innovative information systems.
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
97) The e-business innovation cycle puts strategy ahead of technology.
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
32
98) Explain the organizational requirements for innovation.
Difficulty: Moderate
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
99) Define disruptive innovation and how it leads to the innovator's dilemma.
Difficulty: Difficult
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
33
100) Distinguish between the terms e-commerce and e-business.
Difficulty: Easy
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
101) Discuss three new ways to think about investments in disruptive innovations as suggested
by the e-business innovation cycle.
Difficulty: Moderate
Learning Obj.: 2.3: Explain why and how companies are continually looking for innovative
ways to use information systems for competitive advantage.
Classification: Concept
34
