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Sample Exam Innovation, Organization and entrepreneurship + answers
A 75 multiple choice sample exam with answers.
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Sample Exam (Innovation, Organization, andEntrepreneurship)
1. Which of the following best defines "innovation"?
o a) Any change within an organization.
o b) A change that is new to the context of a firm, industry, or
the world.
o c) A process improvement.
o d) A new way of organizing employees.
2. What is the key difference between incremental and radical
innovations?
o a) Incremental focuses on long-term goals, radical on short-
term gains.
o b) Incremental involves minor improvements, radical involves
fundamental changes.
o c) Radical innovations build on existing knowledge;
incremental does not.
o d) Incremental innovations are focused on product
development, radical on services.
3. Which type of innovation is characterized by recombining
existing knowledge across different domains?
o a) Technological innovation
o b) Product innovation
o c) Radical innovation
o d) Incremental innovation
4. What is the "inverted U-shape" relationship in the context of
slack resources and innovation?
o a) Innovation increases with more slack resources indefinitely.
o b) Both too little and too much slack harm innovation.
o c) More slack leads to less experimentation.
o d) There is no relationship between slack and innovation.
5. In the context of professional service firms, which form of
legitimacy is most critical for radical innovations to succeed?
o a) Internal cognitive legitimacy
o b) External cognitive legitimacy
o c) Internal socio-political legitimacy
o d) External socio-political legitimacy
6. In Nohria and Gulati’s (1996) study, what does a high
amount of slack resources tend to lead to?
o a) More bureaucracy
o b) A decrease in innovation
o c) Increased opportunity for experimentation
o d) More radical innovation
7. According to Chesbrough (2003), which of the following is a
core principle of open innovation?
o a) Relying only on internal ideas for technological
advancement.
o b) Using external ideas and paths to market along with internal
resources.
, o c) Keeping all R&D within the company.
o d) Developing radical innovations in secret.
8. The process of balancing both radical and incremental
innovation is referred to as:
o a) Open innovation
o b) Ambidexterity
o c) Organizational differentiation
o d) Knowledge recombination
9. In the product life cycle, when is the dominant design
typically chosen?
o a) Fluid phase
o b) Specific phase
o c) Transitional phase
o d) Radical phase
10. Which of the following factors inhibits radical
innovation within organizations?
o a) High levels of organizational agility
o b) Strong support from new entrants
o c) Bureaucratic structure and short-term focus
o d) Use of flexible project teams
11. In the context of Jansen et al. (2009), how can firms
overcome the silo effect across departments?
o a) Centralization of decision-making
o b) Cross-functional interfaces
o c) More hierarchical structures
o d) Increased use of formal rules
12. What is "Not Invented Here" syndrome?
o a) Preferring external ideas over internal ones.
o b) Prioritizing internal ideas over external ones.
o c) A focus on exploiting novel knowledge areas.
o d) Avoiding all external partnerships.
13. Which of the following is true about organizations that
engage in frequent incremental innovations, according to
McKendrick and Wade (2009)?
o a) Incremental changes increase the likelihood of failure for
large firms.
o b) Small firms benefit most from frequent incremental
innovations.
o c) Large firms can spread the costs of failure across multiple
innovations.
o d) Incremental innovations always result in long-term firm
survival.
14. Ambidextrous organizations are those that:
o a) Focus only on radical innovations.
o b) Balance exploration and exploitation activities.
o c) Completely separate incremental and radical innovations.
o d) Rely solely on external partnerships for innovation.
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