Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 7: Auditing Organizational Innovation
Chapter 7 Outline
I. Assessing Innovation in Organizations
II. Entrepreneurial Readiness
a. The Organizational Metaphor
III. Innovation Readiness
a. Organizational Assessment of Innovation & Creativity
b. Corporate Entrepreneurial Assessment Instrument (CEAI)
c. Using the CEAI for Innovative Readiness
IV. CEAI Assessment
a. Corporate Entrepreneurship Assessment Instrument
b. Improving Your Firm’s Innovative Readiness
V. Chapter Summary
VI. Key Terms
VII. Review and Discussion Questions
VIII. Endnotes
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 7 Exam Questions
True / False Questions
1. An assessment instrument can help involve organizational members in the change process.
2. Organizational Metaphor assesses a firm’s entrepreneurial culture in a formal, inclement way.
3. One of the best ways to raise a good discussion about a firm’s “innovative readiness” is to
complete the Organizational Assessment of Innovation and Creativity questionnaire.
4. The CEAI provides an indication of a firm’s likelihood of being able to successfully implement
an innovation strategy.
5. Managers are least likely to engage in innovative behavior when the organizational antecedents to
that behavior.
6. A corporate innovation strategy is successfully implemented only when all affected individuals
are committed to it.
7. Lower scores on the CEAI factors are related to increased entrepreneurial activity.
8. The identification of employee perceptions is nonessential to the overall change process.
9. Environments that dismisses innovation produces weak elements of innovative behavior.
10. The innovative audit cannot be used by not-for-profit organizations.
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 7 Exam Questions
Multiple Choice Questions
1. What is one of the five factors that foster an entrepreneurial culture?
A. Management limitations
2. Allows employees to describe aspects of the firm that are not always positive in a way that is non–
threatening and humorous.
A. Management Comparison
3. Measures the key internal organizational factors that influence a firm’s entrepreneurial activities
and outcomes.
4. __________________is a bottom-up process in which product champions pursue new ideas,
often through a political process, by means of which they develop and coordination activities
associated with an innovation until it achieves success.
5. Determining that the value of innovative behavior exceeds that of other behaviors leads managers
to ____________.
6. The CEAI instrument consists of how many Likert-style questions?
Corporate Innovation
Lecture Outlines and Exam Questions
7. What is one of the three methods used to assess the level of innovative factors which exist in an
organization?
A. Innovative Readiness in Organizations
8. What is one way to achieve the maximum benefit from the Corporate Entrepreneurial Assessment
Instrument?
A. Agree with others perceptions
9. What is one of the five steps for using the Corporate Entrepreneurship Assessment Instrument?
10. Who identified several actions large corporations can take to develop the right “atmosphere” for
entrepreneurial behavior to flourish?
D. None of the above
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 7 Exam Questions
Essay Questions
Essay 1
Describe an innovative organizational culture.
Essay 2
Why can the CEAI significantly benefit organizations and is of value to managers seeking to develop a
corporate innovation strategy?
Essay 3
List and define the five stable antecedents of middle-level managers’ entrepreneurial behavior.
Corporate Innovation
Lecture Outlines and Exam Questions
Essay 4
Corporate innovation (entrepreneurship) can take two primary forms—autonomous strategic behavior and
induced strategic behavior. Define them.