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IOE 2023 Mock-Exam
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Exam of 9 pages for the course Innovation, Organization & Entrepreneurship at UVT (IOE 2023 Mock-Exam)
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Mock-Exam 20231. McKendrick & Wade (2009) investigated whether frequent incremental change by a firm had an
effect on the firms’ chance of dying. Their results show that frequent incremental change may
indeed enhance the likelihood that the firm will die. However, firm size also seems to matter with
regard to this relationship.
Figure A Figure B
Indicate which of the statements below is true based on the results from McKendrick & Wade
(2009).
a) Figure A shows the relationship between incremental change and firm mortality for
small firms. The more often small firms innovate the higher their chances of dying.
b) Figure A shows the relationship between incremental change and firm mortality for
large firms. The more often large firms innovate the higher their chances of dying.
c) Figure B shows the relationship between incremental change and firm mortality for
small firms. The more often small firms innovate the lower their chances of dying.
d) There is an inverted U-shape relationship between incremental change and firm mortality
for firms of any size.
2. In his paper on Open Innovation, Chesbrough (2003) discusses four types of organizations
that generate innovations. Which of the following types does Chesbrough distinguish in his
paper?
a) Challengers, architects, followers and missionaries
b) Explorers, exploiters, saints and universities
c) Explorers, merchants, architects and missionaries
d) Venture capitalists, universities, for-profit organizations, and non-governmental organizations
3. What inhibits firms' ability to radically innovate?
a) Organizational structure factors include screening and selection of new projects (NPV favoring
less risky projects, short time horizons, benchmarking using incumbents and not new-comers),
and a bureaucratic organizational structure (reducing receptivity to new projects).
b) Managerial factors include management and board member inertia and myopia.
c) Both a & b
d) None of the above
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