Models of Innovation in Management

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Questions and Answers

What is the central question that has interested management scholars for years?

What type of firm is most likely to innovate?

What is innovation according to the chapter?

The use of new knowledge to offer a new product or service that customers want.

What is the difference between invention and innovation?

Invention is a new way of doing things, while innovation is invention + commercialization.

What are the two types of knowledge that can drive innovation?

Technological knowledge and market knowledge. Signup and view all the answers

What is technological knowledge?

Knowledge of components, linkages between components, methods, processes, and techniques that go into a product or service. Signup and view all the answers

What is market knowledge?

Knowledge of distribution channels, product applications, and customer expectations, preferences, needs, and wants. Signup and view all the answers

What makes a product or service new in the context of innovation?

It has a lower cost, improved attributes, new attributes, or it never existed in that market before. Signup and view all the answers

Why is the process of innovation closely tied to a firm's strategic and competitive context?

Because innovation is driven by a firm's need to compete in the market. Signup and view all the answers

According to Porter, what is innovation?

A new way of doing things that is commercialized. Signup and view all the answers

What is the primary difference between technical innovation and administrative innovation?

Technical innovation requires grate knowledge of thermodynamics, coolants, and electric motors, whereas administrative innovation does not. Signup and view all the answers

What is a product innovation according to Damanpour?

A new product or service introduced to meet an external and market need. Signup and view all the answers

What is a process innovation according to Damanpour?

New elements introduced into an organization's production or service operations. Signup and view all the answers

What is an incremental innovation?

An innovation that builds on existing knowledge. Signup and view all the answers

What is the economic view of innovation?

Innovation renders old products noncompetitive with superior products (lower cost, better or new features). Signup and view all the answers

What is the primary goal of innovation?

To offer new products or services to customers. Signup and view all the answers

What is the characteristic of most innovations?

They are incremental. Signup and view all the answers

What is an example of innovation in the retail industry?

Wal-Mart's location of discount retail stores in small towns in the southwestern United States Signup and view all the answers

What is the outcome of innovation?

Superior products (lower cost, better or new features). Signup and view all the answers

What is the difference between invention and innovation?

Invention is generating an idea or prototyping, while innovation involves championing, herding, and nurturing it into a product or service that customers want. Signup and view all the answers

What is the impact of innovation on old products?

Old products become noncompetitive. Signup and view all the answers

What is the organizational view of innovation?

It is defined in terms of the extent to which it impacts a firm's capabilities. Signup and view all the answers

What is the difference between technical and administrative innovation?

Technical innovation involves improved products, services, or processes, while administrative innovation pertains to organizational structure and administrative processes. Signup and view all the answers

What is a radical innovation?

It is an innovation that requires very different technological knowledge, rendering existing knowledge obsolete. Signup and view all the answers

Why were refrigerators a radical innovation?

Because making them required firms to integrate different knowledge and skills, making existing knowledge obsolete. Signup and view all the answers

What is the main difference between competence-destroying and competence-enhancing innovations?

Competence-destroying innovations make existing knowledge obsolete, while competence-enhancing innovations build on existing knowledge. Signup and view all the answers

What is the focus of the book mentioned in the passage?

Profiting from innovation. Signup and view all the answers

What is a key requirement for an idea to be considered an innovation?

It must be converted into a product or service that customers want. Signup and view all the answers

What is the main perspective of the innovating firm model?

The perspective of the innovating firm Signup and view all the answers

What are the four types of innovations classified by the model?

Regular, Niche, Revolutionary, and Architectural Signup and view all the answers

What is a regular innovation?

An innovation that conserves the manufacturer's existing technological and market capabilities Signup and view all the answers

What is a niche innovation?

An innovation that conserves technological capabilities but obsoletes market capabilities Signup and view all the answers

What is a revolutionary innovation?

An innovation that obsoletes technological capabilities but enhances market capabilities Signup and view all the answers

What is an architectural innovation?

An innovation that makes both technological and market capabilities obsolete Signup and view all the answers

What is an incremental innovation?

An innovation that enhances both component and architectural knowledge Signup and view all the answers

What is a radical innovation?

An innovation that destroys both component and architectural knowledge Signup and view all the answers

Why is market knowledge important in the innovating firm model?

Market knowledge can be just as important as technological knowledge Signup and view all the answers

What can affect a firm's success in exploiting an innovation?

What the innovation does to the capabilities of the firm and its innovation value-added chain of suppliers, customers, and complementary innovators Signup and view all the answers

Why might an innovation be competence-destroying for one firm but not for others?

Because the innovation may affect the firm's capabilities differently than those of its suppliers, customers, or complementary innovators Signup and view all the answers

What is the importance of relations with the value chain in innovation?

They are important and difficult to establish, and can affect the success of an innovation Signup and view all the answers

Why might an incumbent firm still do well with an innovation that is competence-destroying for them?

If the innovation is competence-enhancing for their value chain Signup and view all the answers

What is the role of suppliers, customers, and complementary innovators in the innovation value-added chain?

They are part of the chain affected by an innovation, and their capabilities can influence the success of the innovation Signup and view all the answers

What can happen to a firm's capabilities if an innovation is competence-destroying?

They can be negatively affected Signup and view all the answers

How can an innovation affect the capabilities of a firm's value chain?

It can enhance or destroy them Signup and view all the answers

What is the significance of the innovation value-added chain in understanding innovation?

It highlights the importance of considering the impact of an innovation on the entire value chain, not just the firm Signup and view all the answers

Why is it important to consider the relationships between a firm and its value chain in innovation?

Because the success of an innovation depends on these relationships Signup and view all the answers

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