51) ABC Corp. decides to enter the cell phone market. Before launching its new handset, it
creates a digital platform which allows the general public to post their ideas and opinions about
the features they want in the new phone. In this scenario, the company is ________.
A) forming a joint venture
B) creating a boundaryless organization
C) promoting open innovation
D) forming a strategic partnership
52) Which of the following is an advantage of open innovation?
A) It can be implemented even if the organization follows a rigid structure.
B) It requires minimal support from top management.
C) It gives customers a voice and allows them to be heard.
D) It requires few, if any, changes in the way knowledge is shared.
53) Which of the following is a drawback of open innovation?
A) It increases the level of risk associated with product development.
B) It diverts the organization’s attention away from the marketplace.
C) It nurtures external relationships but not internal ones.
D) It requires extensive support.
54) Collaborative relationships between two or more organizations in which they combine their
resources and capabilities for some business purpose are known as ________.
A) communities of practice
B) strategic partnerships
C) joint stock companies
D) organizational task forces