62. If the firm’s current employees are well-trained in their jobs, but also have other knowledge, skills, and abilities,
these employees have
a. social capital.
b. entrepreneurial capabilities.
c. high absorptive capacity to learn.
d. intellectual slack.
63. Knowledge must be transferred to others in the firm to enhance the entrepreneurial competence of the firm. This
requires that
a. the receiving party have adequate absorptive capacity to learn.
b. the communication process be highly intensive.
c. the knowledge be broken into the smallest comprehensible units.
d. training consultants be involved in every step of transference.
64. The risks of international entrepreneurship include all the following EXCEPT
a. unstable foreign currencies.
b. problems with market efficiencies.
c. limitations on market size.
d. strong “buy-domestic” programs.
65. Research shows that internationally diversified firms tend to be than domestic–only firms.
a. less profitable
b. more innovative
c. less technologically advanced
d. more likely to have an individualistic culture
66. The level of entrepreneurial activity in a nation is the nation’s level of economic development.
a. negatively related to
b. independent of
c. positively related to
d. weakly related to
67. is one of the reasons for the differences in rates of entrepreneurship among different countries.
a. Climate
b. Competitiveness
c. Culture
d. Constitution
68. Research suggests that is needed to encourage entrepreneurial behavior.
a. individualism rather than collectivism
b. a balance between individualism and cooperative behavior
c. collectivism rather than individualism
d. limited autonomy and incentives
69. AgroPharm is searching for a top-level executive. AgroPharm has marketed its products only to U.S. farmers and
agribusinesses in the past. Now, the company plans to expand operations to Mexico and Central America in the
next 2 years. To maximize the chances of success it is critical that the new executive
a. be of Hispanic descent.
b. have international experience.
c. possess an advanced degree in animal science.
d. have a background in managing agribusiness firms.
70. Which of the following is true? For firms to be entrepreneurial, they require a culture with
a. an emphasis on individualism in Western nations and an emphasis on collectivism in Eastern nations.
b. an exceptionally high level of collectivism.
c. a balance of individualism and collectivism.
d. an exceptionally high level of individualism.
71. Successfully creating innovations through internal means requires
a. a highly individualistic culture.
b. significant spending on R&D.
c. acquisitions of innovative firms.
d. venture capital.
72. Panera Bread has innovated to improve the quality of its distribution system, to improve the quality of its bread
dough, and to introduce new menu items. These are examples of
a. incremental innovation.
b. invention.
c. imitation.
d. the use of social capital.
73. Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to
create new soups. Panera Bread is therefore
a. increasing its costs and reducing its potential to succeed.
b. engaged in internal corporate venturing.
c. pursuing innovation through both internal and cooperative strategies.
d. not an innovative company.
74. QuadroVax is investing heavily in research and development on new methods of vaccine development that would
speed up the creation of vaccines for newly emerging viruses and to get these vaccines to the market rapidly.
QuadroVax’s shareholders can expect
a. immediate wealth creation.
b. a long wait for an uncertain payoff.
c. a long wait for a high probability payoff.
d. a large payoff in the short term with rapidly decreasing wealth generation in the longer run.
75. A successful innovation will be less risky but less profitable than a successful innovation.
a. incremental; radical
b. radical; incremental
c. alliance-generated; acquisition-generated
d. acquisition-generated; alliance-generated
76. The development of the original personal computer (PC) was a(n) innovation at the time, whereas adding a
different kind of whitening agent to a soap detergent in an example of a(n)
a. incremental; radical
b. radical; incremental
c. concentric; radical
d. radical; concentric
innovation.
77. Innovations that involve significant technological breakthroughs and create new knowledge
a. build incrementally on the firm’s existing technologies and knowledge.
b. are the most common type of innovation.
c. involve substantial uncertainty and risk.
d. typically have clear market opportunities.
78. involves internally developed incremental and radical innovations that result from deliberate efforts.
a. Internal corporate venturing
b. Autonomous strategic behaviors
c. Bottom-up strategic behaviors
d. Product championing
79. Internal corporate venturing does NOT involve
a. autonomous strategic behavior.
b. induced strategic behavior.
c. strategic alliances.
d. product champions.
80. WayWard Products has a deliberate strategy to encourage internal innovations. It has established processes to
support autonomous strategic behavior as well as induced strategic behavior. WayWard Products is involved in
a. entrepreneurial incubation.
b. creative destruction.
c. internal corporate venturing.
d. cooperative innovation strategies.
81. One of the distinguishing differences between the two sources of internal corporate venturing (autonomous
strategic behavior and induced strategic behavior) is whether the innovation process
a. is encouraged through a bottom-up or top-down process.
b. is encouraged by a product champion or an entrepreneur external to the organization.
c. relies on internal structure or existing strategy to encourage innovation.
d. is in a large or small organization.
82. Autonomous strategic behavior is a(n) process in which product champions pursue new ideas.
a. top-down
b. horizontal
c. integrated
d. bottom–up
83. The idea that it is “vital to sell the ideas to others in the organization so that innovations will be commercialized” is
the rationale behind the use of
a. product champions.
b. joint ventures.
c. strategic leadership.
d. cross-functional teams.
84. A negative effect of acquiring other firms for the purpose of innovation is
a. innovations cannot be transferred between organizations.
b. the effect it can have on the firm’s own ability to produce innovations.
c. innovations may not actually be present in the firm after the purchase is completed.
d. the acquired firm’s employees usually leave.
85. Charles is a customer service representative for a home improvement store. He has creative ideas about how to
increase customer satisfaction. Charles‘s talents will be most likely to be used in a firm that
a. uses the induced strategic behavior form of internal corporate venturing.
b. uses the autonomous strategic behavior form of internal corporate venturing.
c. makes significant investment in research and development.
d. focuses on an acquisition strategy for gaining innovative ideas.
86. The new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units. As
such, Cubitron II is an example of
a. the use of autonomous strategic behavior.
b. the use of induced strategic behavior.
c. development of radical innovations.
d. innovation through acquisitions.
87. To be successful, an autonomous process for developing new products relies on
a. the diffusion of tacit knowledge.
b. the acquisition of innovative firms.
c. strategic alliances with other firms.
d. internal corporate venturing.
88. Induced strategic behavior is a process that fosters product innovations that
a. are likely to change a firm’s strategic intent and mission.
b. will lead to greater financial returns.
c. are aligned closely with current strategy and structure.
d. will come to market in a short period of time.
89. Induced strategic behavior as a form of internal innovation is a(n) process.
a. bottom-up
b. top-down
c. free-flowing
d. external
90. Through the work of cross-functional teams, product development stages are grouped into processes.
a. short-term and long-term
b. parallel or overlapping
c. serially ordered
d. complementary
91. In the implementation of internal innovations, formal and informal processes are best supported through
organizational structures.
a. vertical
b. horizontal
c. functionally oriented
d. multidivisional
92. A major barrier to the use of cross-functional teams is
a. excessive individualism of creative people.
b. lack of communication skills of technical people.
c. independent frames of reference of team members.
d. lack of social capital by team members.
93. A cross-functional product development team has been examining a proposed new product intensively for 6
months. The team has decided that although the product is unique and technologically advanced, the cost of
production will exceed the price that the consumer would be willing to pay. At this point, the product development
team should
a. engage in creative destruction.
b. recommend that the product be sold at a loss in order to create a new market.
c. turn over the product evaluation to a new product-development team which may have more passion for the
product.
d. recommend that the project be set aside.
94. When used effectively, cross-functional teams will often bring about
a. faster product development processes.
b. an increased need for additional information.
c. conflicting information about the business environment.
d. future cooperative alliances.
95. Which of the following is one of the barriers to effectiveness when using cross-functional teams to integrate
organizational functions?
a. dissension within the top management team
b. informal organizational processes within the firm
c. the firm’s strategic orientation
d. organizational politics
96. Cross-functional teams are useful in developing and commercializing new products because each team member
brings his or her special competencies to the project. Each team member brings his/her point of view from his/his
experience and background. On the other hand, these
team members.
a. independent frames of reference
b. entrepreneurial mind-sets
c. professional rivalries
d. politicized points of view
may cause barriers to effective communication among
97. A cross–functional work team is having difficulties in operating smoothly and friction has developed among some of
the members. Many of the strongest complaints are from the representatives of management who complain that the
research scientists are disorganized, haphazard, and undisciplined. Managers complain the scientists do not adhere
to any fixed rules or procedures. On the other hand, the research scientists complain that the managerial
representatives are excessively rule-oriented bureaucrats, and have no flexibility or spontaneity. The main problem
with this team seems to be centered around differences in
a. interpersonal orientation.
b. time orientation.
c. goal orientation.
d. formality of structure.
98. The dimensions on which functional departments can vary include all the following EXCEPT orientation.
a. time
b. customer
c. technological
d. interpersonal
99. The competition for resources among those representing different organizational functions within a firm often leads
to
a. erosion of social capital.
b. heightened communication.
c. organizational politics.
d. empowerment of organizational members.