Management and Innovation Exam Review

A theory suggesting that a firm's resources and capabilities are critical for achieving competitive advantage.

The process by which companies produce goods or services that are valuable to customers or markets, leading to profitability.

The methods through which firms capture a portion of the value they create, ensuring they benefit from their innovations.

The introduction of new ideas, methods, or products that significantly improve or create value in a firm.

Legal strategies like patents and trademarks that safeguard a firm's intellectual property and innovations.

Non-legal strategies, such as trade secrets or brand reputation, that help firms maintain a competitive edge.

A platform that connects two distinct user groups who provide each other with network benefits, like buyers and sellers.

Engaging in evaluative conversation that examines various theoretical perspectives and their implications.

The belief that electric engines are overhyped compared to fuel-injection engines, emphasizing lighter cars.

The idea that success can lead to complacency that hinders future innovations.

Larger firms tend to invest more in R&D, but innovations grow less proportionally with size.

Measured as innovative output over R&D expenditures, it declines as firms grow larger.

Elements that impact how firms adapt, such as market trends or technology advancements.

The core elements defining effective strategy: diagnosis, guiding policy, actions.

A strategy that differentiates a business by choosing unique activities for value delivery.

Determination of long-term goals and objectives, and how to achieve them.

The process of generating value for stakeholders through innovation.

The system of evaluation used in the course, including exams and bonus points.

Individual written exam consisting of short answer and open essay questions.

The ability to capture and protect the value generated from innovations.

Continuously innovating to stay relevant and competitive in the market.

Extra points earned through group presentations, requiring passing the exam.

Formation of study groups of 2-4 students via self-enrollment.

A firm's capacity to capture and safeguard the value from its innovations.

Key inquiries of a strategy: how to create and capture value?

Strict prohibition of copying in group assignments; originality is essential.

The average lifespan of a Fortune 500 company and its survival rate over decades.

Only 16% of firms listed on the 1957 S&P 500 remained by 2007.

1/3 of Fortune 500 firms from 1970 had vanished by 1983.

A firm's ability to recognize, assimilate, and apply new external information for commercial purposes.

The process of identifying and acquiring knowledge critical to operations from external sources.

Analyzing and processing external information to comprehend and understand it effectively.

Combining new knowledge with existing knowledge to enhance understanding and capabilities.

Incorporating and utilizing knowledge into organizational operations to improve performance.

The dilemma organizations face between exploring new opportunities and exploiting existing capabilities.

Resolving exploration-exploitation tensions over time by alternating focus between the two.

Resolving tensions by creating separate units for exploration and exploitation within the organization.

Balancing exploration and exploitation by embedding both within day-to-day operations.

Four approaches that organizations use to manage contradictions like exploration-exploitation.

A strategy where exploration and exploitation activities are conducted in different locations or units.

A strategy that alternates between exploration and exploitation over different time periods.

Partnerships with other organizations to enhance exploration capabilities without internal resource strain.

When a company centers its resources on maximizing its existing capabilities while exploring elsewhere.

An organizational strategy that encourages contributions and innovation from all levels of employees.

The challenge for individuals to constantly shift between exploration and exploitation tasks effectively.

The potential benefits gained when different organizational units work together efficiently.

Challenges faced in combining successful explorative activities back into the core business.

Concerns about whether the benefits of a strategy justify its costs, particularly in ambidextrous setups.

Innovative and risk-taking efforts aimed at developing new ideas or products.