Sample Questions - Chapter 1 2
Sample Questions - Chapter 1 2
Sample Questions - Chapter 1 2
2. Innovation can only happen in the private sector because the public sector is not
concerned with making profits or competition between firms.
a) True
b) False
4. Haagen Daz ice cream was created to open up a new market amongst adults for what had
traditionally been seen as a children's food. This is an example of position innovation.
a) True
b) False
10. What is it called when technological innovation involves problem solving that improves
the method of creating or delivering a product or service?
a) process innovation
b) product innovation
c) radical innovation
d) incremental innovation
12. In which phase of an industry does competition typically shift away form design
uniqueness to production costs as firms focus on achieving production efficiencies with the
common design?
a) process
b) product
c) fluid
d) specific
13. In which phase is there most likely to be the largest increase in the number of firms?
a) process
b) product
c) fluid
d) specific
14. Which researcher(s) modified the Abernathy and Utterback model by applying it to service
businesses?
a) Barras
b) Tushman
c) Christensen
d) Henderson and Clark
15. What is most likely to occur in the second phase of the reverse product cycle theory?
a) the adopted technology is employed to make existing services more efficient
b) incremental improvements are most likely to occur
c) the new technology is used to make the service more efficient
d) the technology is used to create new services, making changes radical
16. Which model was developed after observing that, in some cases, incumbent firms had
little trouble transitioning to new radical technologies?
a) model of competence destroying and competence enhancing innovation
b) model of value networks and disruptive innovation
c) model of reverse product cycle theory
d) model of architectural innovation
17. According to Henderson and Clark, which type of innovation is one that changes the
linkages between the components but leaves the components intact?
a) radical
b) stable
c) modular
d) architectural
18. According to Henderson and Clark, what type of innovation would occur if core concepts
were reinforced and linkages were unchanged?
a) incremental
b) modular
c) architectural
d) radical
Solution
1) a
2) b
3) c
4) a
5) d
6) b
7) c
8) c
9) a
10) a
11) c
12) d
13) c
14) a
15) c
16) a
17) d
18) a