strategic entrepreneurship

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Questions and Answers

What is a characteristic advantage of a lightweight team?

Invisible status differences

In-depth analysis

Fast coordination (correct)

Very high commitment

Which aspect is a disadvantage of a heavyweight team?

Consistency

Not in-depth (correct)

Autonomy

High commitment

What defines an autonomous team in terms of innovation?

Strong connection to functional disciplines

Radical innovation and decision power (correct)

Limited authority in decisions

Incremental innovation focus

What is NOT true about the strategic approach of ToolsMed & Co after the restructuring?

Focus primarily on external venturing Signup and view all the answers

What is a critical element of INBO's approach to new business development?

Standardized processes for monitoring Signup and view all the answers

Which of the following is a fundamental strategy for radical innovations according to Stephen Raes?

Exploration of new technologies and markets Signup and view all the answers

What is a disadvantage often associated with an autonomous team?

Difficulty in management Signup and view all the answers

What are the expected time horizons for radical innovations as mentioned?

5 - 10 years Signup and view all the answers

Which integration mechanism was found to be ineffective in mediating the relationship between structural differentiation and ambidexterity?

Senior team contingency rewards Signup and view all the answers

What role do senior team social integration mechanisms play in relation to structural differentiation and ambidexterity?

They facilitate open discussion and debate on conflicting goals. Signup and view all the answers

Which hypothesis was supported regarding organizational integration mechanisms?

Cross-functional interfaces mediate the relationship effectively. Signup and view all the answers

What is a core benefit of organizational integration mechanisms?

They facilitate knowledge exchange between differentiated units. Signup and view all the answers

What impact does connectedness have on structural differentiation and ambidexterity, according to the hypotheses?

It has no mediating effect. Signup and view all the answers

How do boundary-spanning mechanisms contribute to ambidexterity?

They develop a common language across units. Signup and view all the answers

Which statement is true about the relationship between structural differentiation and ambidexterity?

Both informal and formal integration mechanisms mediate the relationship. Signup and view all the answers

What aspect was shown to be essential for achieving ambidexterity in organizations?

Integration mechanisms that enable balanced resource allocation. Signup and view all the answers

What is one of the four criteria required by systems theory for a major innovation system?

The system is identifiable and its elements are interdependent. Signup and view all the answers

Dynamic capabilities theory emphasizes the importance of which aspect in organizations?

Integration and reconfiguration of assets. Signup and view all the answers

Which of the following is NOT included as a unique skillset needed according to dynamic capabilities theory?

Resource conservation Signup and view all the answers

What can hinder established firms from adapting to new technologies according to Tripsas and Gavetti?

Competence destroying technology. Signup and view all the answers

Which misconception about commercial success is commonly held among managers?

Only major projects lead to success. Signup and view all the answers

Which aspect is NOT related to bounded rationality in managerial decision-making?

Managers make choices without any constraints. Signup and view all the answers

What describes the razor blade business model?

Core product sold at a cost or little margin. Signup and view all the answers

In the context of systems theory, what does the effect of the whole being greater than the sum of the parts refer to?

The collaboration among components leads to enhanced outcomes. Signup and view all the answers

What is a crucial challenge organizations face with radical technological discontinuities?

To identify necessary technological capabilities and strategic beliefs Signup and view all the answers

What does structural differentiation allow in an organization?

The effective execution of tasks within separate units Signup and view all the answers

Which of the following is NOT one of the ways senior teams can manage differentiation and integration?

Implement a top-down decision-making process Signup and view all the answers

What may interfere with the benefits of structural differentiation in corporate entrepreneurship?

The costs associated with organizational integration Signup and view all the answers

What is indicated as impractical in rapidly changing environments?

Ongoing turnover of top management teams Signup and view all the answers

Which term describes the separation of exploitative and explorative activities in an organization?

Structural differentiation Signup and view all the answers

How can organizations develop the ability to question their strategic beliefs?

By fostering an environment of continuous questioning Signup and view all the answers

What are the contingencies that affect differentiation-integration combinations related to corporate entrepreneurship?

Environmental dynamism and organizational size Signup and view all the answers

Which attitude includes being open to discontinuing existing products for potentially better ones?

Willingness to cannibalize assets Signup and view all the answers

What practice helps create internal competition within a firm?

Creation of internal markets Signup and view all the answers

What is NOT a method of capability transformation mentioned?

Repurposing Signup and view all the answers

What does the concept of 'recombination' refer to in capability transformation?

Merging two existing capabilities Signup and view all the answers

How does an increase in the number of failures correlate with the quality of patents filed by a firm?

Quality increases despite a decrease in quantity Signup and view all the answers

Which of the following best defines 'retrenchment' in capability transformation?

Decline in the utilization of a capability Signup and view all the answers

What role do venture reviews play in venture management processes?

They assess performance and align strategies Signup and view all the answers

What is a common outcome of empowering product champions in an organization?

Enhanced responsibility and ownership Signup and view all the answers

What are key traits of the H2 profile in terms of personality and behavior?

Appetite for risk-taking and high energy levels Signup and view all the answers

Which statement accurately reflects a weakness commonly found in H2 individuals?

A tendency for short attention spans Signup and view all the answers

How are hybrid personalities within the H2 profile best described?

Highly adaptive and focused Signup and view all the answers

Why are teams important for innovation according to the given content?

They encourage collaboration and diverse ideas. Signup and view all the answers

What is a potential trap when managing H2 individuals in innovation settings?

Failing to recognize their unique profile and characteristics Signup and view all the answers

What is a major risk of extreme openness in organizational innovation?

Loss of control over important decisions Signup and view all the answers

How is the relationship between being externally driven and focusing on current customers described?

It limits the scope of innovation Signup and view all the answers

What was a key factor in Henry Ford's success in implementing the moving assembly line?

His ability to adapt ideas from other industries Signup and view all the answers

What assumption is associated with the combination of dimensions 2 and 4 regarding future predictions?

The future will equal the past Signup and view all the answers

What can be inferred about the need for a balance in the dimensions of organizational approach?

Balancing dimensions prevents chaos in innovation Signup and view all the answers

What do customers typically desire in innovations according to the discussion?

Products that are cheaper, better, and faster Signup and view all the answers

What type of innovation can result from focusing too much on external factors?

Incremental innovation Signup and view all the answers

What is a critical consideration in maintaining an open approach to innovation?

Selective attention to significant insights Signup and view all the answers

What was a significant factor contributing to Nokia's failure in the mobile business?

Inadequate trust and autonomy among managers Signup and view all the answers

In the context of Nokia's management, what did top managers primarily focus on?

Managing external environmental factors Signup and view all the answers

Which type of mental activity involves recognizing patterns and interpreting information?

Perception Signup and view all the answers

What is a consequence of a lack of trust between middle managers at Nokia?

Hindrance in addressing problems Signup and view all the answers

What did Nokia prioritize over investing in stakeholder relationships?

Maximizing financial performance Signup and view all the answers

Which activity is NOT part of the sensing phase in organizational dynamics?

Validating stakeholder feedback Signup and view all the answers

Why might mathematical models be ineffective in stock market predictions?

They rely on historical data that may not apply to the future. Signup and view all the answers

What was a key managerial capability needed during the incubation phase at Nokia?

Ability to explore new environments Signup and view all the answers

What is a key characteristic of a culture that promotes innovation within an organization?

Tolerance for risk taking Signup and view all the answers

How should the leadership approach innovation teams to effectively encourage experimentation?

Provide sponsorship and support for innovative ventures Signup and view all the answers

What is one way to increase receptiveness to new ideas within divisions?

Increase budget for projects transitioning to graduation Signup and view all the answers

Which dimension reflects an organization's willingness to sacrifice current product sales for future opportunities?

Willingness to cannibalize Signup and view all the answers

What type of reporting system can enhance the evaluation of innovation initiatives within an organization?

Milestones and strategic tracking Signup and view all the answers

In fostering a future-oriented approach, what should an organization prioritize?

Anticipating future customer needs Signup and view all the answers

How can organizations demonstrate commitment to innovation outside of financial factors?

Encouraging an environment for failure and learning Signup and view all the answers

What is the role of strategic and financial tracking systems in innovation?

They measure the progress of new initiatives comprehensively Signup and view all the answers

What is the key benefit of positive framing when presenting options to save lives?

It leads to more certain and favorable decisions. Signup and view all the answers

In the context of innovation, what is crucial for ensuring collaboration within teams?

Encouraging open communication about goals. Signup and view all the answers

What role does social cognition play in the reconfiguring phase of an organization?

It helps comprehend the organizational goals. Signup and view all the answers

What is the likely outcome if an opportunity is framed negatively in decision-making?

People will often choose the riskier option. Signup and view all the answers

What should organizations avoid relying solely on when innovating?

Deliberate reasoning or emotions. Signup and view all the answers

What can be considered a significant problem if communication between top management and middle management is ineffective?

Difficulty in aligning organizational goals. Signup and view all the answers

Why might individuals be more inclined to select a certain option over a risky one in decision-making?

Certainty offers a perception of safety. Signup and view all the answers

What is an undesirable outcome of a rigid decision-making structure in an organization?

Stifled creativity and innovation. Signup and view all the answers

What is the total number of points possible in the exam?

140 points Signup and view all the answers

Which statement about the grading structure is accurate?

Only one option is correct for each multiple choice question. Signup and view all the answers

What is the main focus of the exam questions?

Understanding arguments in theoretical frameworks Signup and view all the answers

When are grades for the exam expected to be released?

On Thursday, 8 November 2023 Signup and view all the answers

What happens if 'all answer options are correct' in a multiple choice question?

You receive no points for other options. Signup and view all the answers

What does the instruction to flag questions in the online exam allow students to do?

Revisit flagged questions later in the exam. Signup and view all the answers

What does argumentation in the theory section primarily involve?

Analyzing the rationale behind theoretical frameworks. Signup and view all the answers

What is a critical aspect that the exam is designed to test regarding previous years' example questions?

Reasoning based on provided examples from lectures or papers. Signup and view all the answers

What type of firms can potentially create a blue ocean?

Both incumbents and new entrants across all sectors Signup and view all the answers

In high-velocity markets, what is true about dynamic capabilities?

They are simple but can have unpredictable outcomes Signup and view all the answers

Which statement is incorrect regarding dynamic capabilities in high-velocity markets?

Imitating competitors' dynamic capabilities leads to success Signup and view all the answers

What effect does a change in incentive schemes have on merchandisers according to Lee and Meyer-Doyle (2017)?

Merchandisers initiate a higher frequency of exploratory deals after the change Signup and view all the answers

Which of the following best describes when 'all answer options are correct' is the correct response?

When all previous statements provide valid points Signup and view all the answers

What characterizes the correct answer when 'all answer options are correct' is inaccurate?

All options contain some incorrect information Signup and view all the answers

In the context of assessing dynamic capabilities in firms, which concept holds more significance in high-velocity markets?

Dynamic capabilities must often adapt based on environmental changes Signup and view all the answers

How do firms benefit from empirical findings like those from Lee and Meyer-Doyle?

They guide firms in developing effective incentive structures Signup and view all the answers

What is the impact on revenue from exploratory deals when the incentive scheme is switched from a performance-based salary to a fixed salary?

Revenue from exploratory deals decreases. Signup and view all the answers

Which factor does NOT influence the need for integration in structurally differentiated organizations according to Burgers & Covin (2016)?

Higher number of clients. Signup and view all the answers

What effect do more false negatives in the incentive scheme have on exploratory deals initiated by merchandisers?

Increase the likelihood of exploratory deals. Signup and view all the answers

According to the findings of Gibson & Birkinshaw (2004), how do ambidextrous business units affect perceived business performance?

They increase perceived business unit performance. Signup and view all the answers

Which of the following statements is correct regarding the combinations of integration and differentiation in organizations?

A combination of integration and differentiation fosters new corporate ventures. Signup and view all the answers

What is a common misconception among managers regarding commercial success?

Success can be achieved without innovation. Signup and view all the answers

How do firms with a higher number of employees relate to structural integration needs?

They have a stronger need for integration. Signup and view all the answers

What is a likely outcome when merchandisers face more false negatives under a new incentive scheme?

Higher frequency of exploratory deals. Signup and view all the answers

What best illustrates the idea that core competencies can turn into core rigidities?

Continuing to follow a previously successful business model hinders innovation. Signup and view all the answers

What is necessary for achieving structural ambidexterity in an organization?

Creating separate units for exploration and exploitation. Signup and view all the answers

Which phrases accurately describe the characteristics of a highly disruptive business?

An organization that explores new opportunities while maintaining existing operations. Signup and view all the answers

What is a consequence of managers adhering to outdated business models?

Impediment to the necessary digital innovations. Signup and view all the answers

In what way can organizations achieve differentiation and integration?

Through cross-functional interfaces linking separate units. Signup and view all the answers

What defines the term 'razor/blade' business model?

Selling low-cost systems and high-margin consumables. Signup and view all the answers

What critical trait contributes to a firm's success in adapting to innovative processes?

Flexibility to abandon outdated practices for new approaches. Signup and view all the answers

What is a potential challenge of maintaining structural ambidexterity?

Finding balance between explorative and exploitative strategies. Signup and view all the answers

Study Notes

Functional Team Structures

Functional disciplines apply a sequential approach, emphasizing task division and specialization.
Light weight teams promote fast coordination with a project leader but may suffer from conflicting loyalty.
Heavy weight teams focus on adjacent innovation, providing autonomy to project leaders but may lack in-depth expertise.
Autonomous teams (Tiger teams) support radical innovation, with project leaders having full decision-making power albeit facing management challenges.

Innovation Dynamics

Radical innovations typically have a time horizon of 5-10 years and require substantial funding (around 5 million initially).
ToolsMed & Co, established in 1925, shifted focus towards operational excellence and innovation after restructuring in 2010.

Innovation & New Business Opportunities (INBO)

INBO aims for systematic processes to foster new business growth combining external and corporate venturing.
The Ansoff strategy matrix indicates levels of innovation proximity to core activities, differentiating between "Little C" (distant) and "Big C" (close).

System Theory & Dynamic Capabilities

System theory emphasizes interdependence among elements, achieving results that exceed individual contributions, and clear purposes within larger systems.
Dynamic capabilities theory focuses on strategic management adapting firm-specific resources to meet environmental demands, requiring attributes such as courage and divergent thinking.

Managerial Cognition & Inertia

Managerial cognition influences organizational inertia, especially when facing competence-destroying technologies or changes that undermine established knowledge.

Organizational Structure & Entrepreneurship

Structural differentiation allows separate organizational units for exploitative and exploratory activities, fostering corporate entrepreneurship.
Senior teams manage contradictions through shared visions, synchronization of actions, and structural linking mechanisms, though integration may incur additional costs.

Research Findings on Integration Mechanisms

Senior team social integration supports discussion of conflicting demands, while formal rewards do not aid in reconciling differentiated units.
Cross-functional interfaces enhance knowledge exchange, aiding ambidextrous organizations in maintaining a common understanding without disrupting internal processes.

Attitudes and Practices Driving Innovation

Key attitudes for innovation success include a willingness to cannibalize assets, future orientation, and risk tolerance.
Effective practices include empowering product champions and establishing internal markets to encourage competition.

Capability Transformation

Capability development includes creating products, patents, and enhancing personal and organizational capabilities.
Transformation processes involve managing ventures, conducting venture reviews, and connecting with broader learning systems.

Learning from Failures

Research indicates that while an increase in failures can lead to decreased R&D output in firms, the quality of patents (reflected in citations) tends to improve, suggesting valuable lessons can be extracted from small failures.

Hiring and Collaboration Strategies

Employ outsiders for diverse perspectives and innovative beliefs on success.
Facilitate borrowing of assets from established organizations to leverage competitive advantages.
Implement ‘painless’ borrowing through high transfer prices and reward cooperation among business unit managers.

Strategic Shift and Leadership Dynamics

Senior managers should actively sponsor innovation initiatives, aligning “strategy-in-use” with the espoused strategy.
Foster a culture of experimentation and learning from failures, exemplified by leadership at Unilever.
Recruit individuals who demonstrate ownership over innovation efforts.

Structure and System Enhancements

Introduce milestone-based reporting systems emphasizing non-financial indicators.
Utilize a scoring system (Red/Yellow/Green) to evaluate strategy clarity, model feasibility, and marketplace performance.
Empower decision-making at higher management levels and integrate ventures with appraisals and compensation aligned with business unit managers.

Human Resource Management in Innovation

Transition from viewing roles as jobs to considering them as careers dedicated to innovation.
Form dedicated innovation teams with clear roles: leadership, strategy, operations/finance, and technology.
Standardize compensation frameworks to support innovation without differentiation.

Organizational Culture and Environmental Orientation

Establish a risk-accepting, open culture that encourages input from all levels.
Embrace three key dimensions:
- Willingness to disrupt existing products for new opportunities.
- Future orientation focusing on emerging customer needs rather than current demands.
- Risk tolerance to facilitate innovation despite barriers.

Traits and Skills of Innovators

Profile key traits of hybrid personalities: adaptability, discipline, high energy, and risk appetite.
Recognize comfort in managing ambiguity and balancing social intelligence along with collective collaboration.

Team Dynamics in Innovation

Innovation thrives on teamwork to counteract myths of solitary genius.
Awareness of customer needs is essential; don’t solely rely on past preferences for future innovations.
Balance external orientation with internal reflection to avoid chaos, promote discovery, and ensure balanced decision-making.

Strategic Decision-Making and Cognitive Processes

Develop mental capabilities in perception and attention to identify opportunities.
Utilize strategic framing to reshape perceptions positively, influencing decision-making during uncertain scenarios.
Communication and social cognition are crucial in reconfiguring organizational structures for innovation.

Managing Complexity and Trust Building

Encourage open communication from top to middle management, fostering trust to facilitate innovation.
Engage employees in collaborative goal-setting, enhancing the effectiveness of reconfiguration efforts and innovative capacities.

Exam Overview

Scheduled for Tuesday, 24 October from 12:15 to 14:30 hrs.
Grades will be available by Thursday, 8 November 2023.
Inspection details to be announced.

Exam Format

Total of 25 questions worth 140 points.
24 multiple-choice questions (MCQs) worth 120 points; each correct answer earns 5 points and incorrect answers earn 0 points.
1 open question valued at 20 points.
Participation in tutorials contributes a maximum of 60 points (30 points for 1 tutorial, 60 points for 2).

Exam Accessibility

Administered online, allowing question review and flagging for later.
Submission of answers can be made at any time before the time limit.

Key Question Types

Questions are derived from lectures, slides, and academic papers.
Emphasis on understanding the course material, including arguments, measurements, and findings in theory.

Understanding Example Questions

Example-Based Questions: Answers based on specific cases from lectures or papers.
All Answer Options Correct: Selecting the option indicating all statements are true can be the correct response.
Understanding the context, rather than memorizing, is essential to selecting the correct answer.

Previous Exam Examples

Empirical Articles: Questions may test specific findings from empirical studies, requiring knowledge of results rather than hypotheses.
Structural Differentiation: Notable findings from articles indicating the need for integration in structurally differentiated organizations are relevant.

Important Concepts

Structural Ambidexterity: Represents an organization's dual ability to explore and exploit simultaneously through separate units that are integrated.
Dynamic Capabilities: Recognized in high-velocity markets, with implications for competitive advantage.

Core Competencies and Rigidities

Importance of understanding how core competencies can transition into core rigidities, using Polaroid's historical challenges as a case study.

Required Knowledge Areas

Familiarity with theoretical arguments and empirical study findings.
Ability to explain concepts like structural ambidexterity succinctly and clearly.

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Description

This quiz covers various project management disciplines such as the functional and lightweight team approaches. It explores concepts like task division, specialization, and coordination, highlighting both advantages and disadvantages of each method. Test your understanding of incremental and adjacent innovation strategies within project management.