Strategic Management Concepts
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Strategic Management Concepts

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Questions and Answers

Which statement exemplifies the concept of core rigidities as discussed by Tripsas and Gavetti?

  • A business shifts its focus to emerging markets to capture new consumers.
  • An organization maintains a business model that once ensured success but now hinders innovation. (correct)
  • A company rapidly adopts new technology to stay competitive.
  • A firm outsources production to reduce costs and increase efficiency.

    • What is a necessary approach for organizations to cultivate highly disruptive businesses, according to Raish & Tushman?

  • Exploring innovative ideas independently without integration.
  • Focusing solely on market trends to guide product development.
  • Combining integration with differentiation strategies. (correct)
  • Exclusively relying on existing processes for efficiency.

    • According to Gibson & Birkinshaw, what is the impact of having more ambidextrous business units?

  • They primarily focus on cost-cutting measures.
  • They contribute to increased perceived performance within the business unit. (correct)
  • They hinder the overall performance of the business.
  • They decrease the likelihood of successful innovations.

    • What is a significant challenge organizations face when managing radical innovation according to O'Connor?

    <p>Integrating radical innovations with established management systems.</p> Signup and view all the answers

    Which action reflects a fundamental misunderstanding of the core rigidity concept as per Tripsas and Gavetti?

    <p>A company persists with a traditional model despite market changes.</p> Signup and view all the answers

    Which conclusion can be drawn from Raish & Tushman's perspective on organizational strategies?

    <p>Independence in exploring new ideas is detrimental for corporate growth.</p> Signup and view all the answers

    Which of the following assertions is incorrect regarding Gibson & Birkinshaw's findings?

    <p>Ambidexterity does not influence an organization's profitability.</p> Signup and view all the answers

    What can result from the continued adherence to obsolete business practices based on the concept of core rigidities?

    <p>Increased resistance to changes in consumer preferences.</p> Signup and view all the answers

    What role do heuristics play in decision-making according to Tversky & Kahneman?

    <p>They simplify decision-making under uncertainty but often lead to biases.</p> Signup and view all the answers

    How does internal corporate venturing contribute to innovation?

    <p>By encouraging the development of breakthrough technologies within established firms.</p> Signup and view all the answers

    What is required for managing strategic contradictions according to Smith & Tushman?

    <p>A combination of both exploration and exploitation.</p> Signup and view all the answers

    What key insight about organizational ambidexterity do O'Reilly & Tushman provide?

    <p>Firms maintain separate units for exploration and exploitation under the same strategy.</p> Signup and view all the answers

    Which of the following best reflects a finding about decision-making traps?

    <p>Decision-makers often fall into traps that limit their options through framing.</p> Signup and view all the answers

    What do Khanna, Guler, & Nerkar suggest regarding learning from failures?

    <p>Small failures in R&amp;D can provide more valuable learning opportunities than large ones.</p> Signup and view all the answers

    What was the main goal of digitalization efforts at Siemens according to Collis & Tunker?

    <p>To transform business models and processes through digital innovations.</p> Signup and view all the answers

    According to Meissner & Wulf, how does scenario planning assist organizations?

    <p>By reducing biases when evaluating long-term options.</p> Signup and view all the answers

    What do Teece's arguments on dynamic capabilities emphasize?

    <p>Adaptation to changing environments to build competitive advantage.</p> Signup and view all the answers

    Which heuristic did Kahneman and Tversky identify as common in uncertain situations?

    <p>Anchoring, where individuals focus heavily on initial information.</p> Signup and view all the answers

    What is crucial for encouraging radical change without alienating core business processes?

    <p>Framing non-incremental innovation within established firms</p> Signup and view all the answers

    Which mechanism is key for achieving organizational ambidexterity?

    <p>Establishing separate teams for exploration and exploitation</p> Signup and view all the answers

    What primary function of corporate venture capital (CVC) did researchers highlight?

    <p>Providing early warnings of technological discontinuities</p> Signup and view all the answers

    How does corporate culture influence innovation on a global scale?

    <p>It facilitates or hinders radical innovation</p> Signup and view all the answers

    What did researchers suggest about multibusiness diversifiers and disruptive technologies?

    <p>Their subsidiaries often struggle to adopt new technologies</p> Signup and view all the answers

    What is a result of frequent small failures in R&D according to the findings?

    <p>They promote learning and improve performance over time</p> Signup and view all the answers

    What does contextual ambidexterity involve?

    <p>Aligning and adapting within the same unit</p> Signup and view all the answers

    What condition is crucial for differentiation and integration in corporate entrepreneurship?

    <p>Organizational size and environmental stability</p> Signup and view all the answers

    What challenge do established firms face regarding breakthrough innovations?

    <p>Rigid managerial identities hinder their capability</p> Signup and view all the answers

    What leadership style is necessary for achieving ambidexterity?

    <p>A flexible leadership style promoting exploration</p> Signup and view all the answers

    How does organizational identity relate to technology in firms?

    <p>Identity drives technology adoption and response</p> Signup and view all the answers

    Why is prioritizing short-term goals detrimental in achieving ambidexterity?

    <p>It leads to undervaluing exploration activities</p> Signup and view all the answers

    What role do separate teams play in organizational performance?

    <p>They facilitate both exploration and exploitation</p> Signup and view all the answers

    What is the consequence of organizational inertia in large firms?

    <p>It prevents adaptability and hinders innovation</p> Signup and view all the answers

    What is a key driving factor behind breakthrough innovations?

    <p>Self-efficacy and idealism of individuals</p> Signup and view all the answers

    What common pitfall do decision-makers often encounter?

    <p>Framing decisions that limit options</p> Signup and view all the answers

    What aspect is crucial for contextual ambidexterity?

    <p>Ability to switch between strategies</p> Signup and view all the answers

    How can senior leaders enhance organizational ambidexterity?

    <p>By modeling adaptable behavior</p> Signup and view all the answers

    What is a significant finding related to internal corporate venturing?

    <p>It leads to enhanced capabilities in established firms</p> Signup and view all the answers

    Which behavior of decision-makers can hinder effective decision-making?

    <p>Limiting themselves through decision framing</p> Signup and view all the answers

    What organizational characteristic promotes effectiveness in innovation processes?

    <p>Flexibility and adaptability in employee roles</p> Signup and view all the answers

    What role does individual idealism play in innovation?

    <p>It fosters creativity and long-term thinking</p> Signup and view all the answers

    What is a defining characteristic of radical innovation as defined by O’Connor?

    <p>Innovations that introduce significant market disruption and high uncertainty.</p> Signup and view all the answers

    According to O’Connor & DeMartino, how can large firms manage radical innovation effectively?

    <p>By creating separate, dedicated units focused on innovation.</p> Signup and view all the answers

    What does corporate venture capital (CVC) primarily offer according to Maula, Keil, & Zahra?

    <p>Early access to emerging technologies and business models.</p> Signup and view all the answers

    How does organizational identity impact technology adoption in firms according to Tripsas?

    <p>It affects how firms adopt and develop new technologies.</p> Signup and view all the answers

    What aspect of corporate culture is crucial for radical innovation in global markets according to Tellis, Prabhu, & Chandy?

    <p>Facilitating or hindering radical innovation.</p> Signup and view all the answers

    What balances efficiency and innovation according to Raish & Tushman?

    <p>A balance between integration and differentiation.</p> Signup and view all the answers

    What do Smith & Tushman note is essential for managing innovation streams?

    <p>An ability to balance both exploitation and exploration.</p> Signup and view all the answers

    What is the role of heuristics in decision-making as investigated by Tversky & Kahneman?

    <p>They illustrate reliance on the first piece of information encountered.</p> Signup and view all the answers

    How does AI impact knowledge worker productivity according to Dell’Aqua et al.?

    <p>It enhances productivity in some areas while disrupting others.</p> Signup and view all the answers

    What structural element is key in managing radical innovation within large firms according to O’Connor & DeMartino?

    <p>Dedicated groups operating independently.</p> Signup and view all the answers

    What is a misconception about how to manage innovation efforts effectively?

    <p>Isolating innovation completely from market influences.</p> Signup and view all the answers

    Which of the following is a common misconception regarding corporate venturing's outcomes?

    <p>It tends to focus only on small incremental innovations.</p> Signup and view all the answers

    What approach is needed for achieving digital innovation based on Gilsing's argument?

    <p>Integration of both technology and market-driven strategies.</p> Signup and view all the answers

    What factor significantly influences R&D performance in the pharmaceutical industry?

    <p>Learning from small failures, which improves long-term R&amp;D outcomes.</p> Signup and view all the answers

    How can top management teams best manage strategic contradictions?

    <p>Simultaneously pursuing both exploitation and exploration strategies.</p> Signup and view all the answers

    What is defined as dynamic capabilities?

    <p>A firm’s ability to adjust internal routines to changes in the external environment.</p> Signup and view all the answers

    How can organizations best achieve ambidexterity?

    <p>A firm dedicates separate teams to exploration and exploitation but maintains a unified strategic focus.</p> Signup and view all the answers

    What benefit do cross-functional interfaces provide in large organizations?

    <p>Foster corporate entrepreneurship by enabling knowledge sharing.</p> Signup and view all the answers

    Which approach is least effective in cultivating strategic flexibility?

    <p>Relying solely on historical data to make decisions.</p> Signup and view all the answers

    What does the concept of organizational inertia suggest about established firms?

    <p>They often struggle to make necessary changes due to established routines.</p> Signup and view all the answers

    Which strategy is likely to hinder a firm's innovative capabilities?

    <p>Focusing intensely on short-term financial returns.</p> Signup and view all the answers

    What strategy is essential for fostering corporate entrepreneurship?

    <p>Enabling knowledge sharing</p> Signup and view all the answers

    What is the key impact of top management team framing on innovation?

    <p>Establishing narratives that support innovative ideas</p> Signup and view all the answers

    What approach can help firms sustain radical innovation?

    <p>Developing dynamic capabilities for continuous learning</p> Signup and view all the answers

    What primarily contributed to Polaroid's failure in the digital imaging market?

    <p>Managerial adherence to outdated business models</p> Signup and view all the answers

    Which corporate characteristic is vital for driving radical innovation across nations?

    <p>Corporate culture that promotes risk-taking</p> Signup and view all the answers

    What structural organization is necessary for facilitating radical innovation?

    <p>A flexible, decentralized structure</p> Signup and view all the answers

    How can organizations achieve contextual ambidexterity?

    <p>Creating a supportive organizational context</p> Signup and view all the answers

    What is a benefit of scenario planning according to research findings?

    <p>Improving decision-making quality over the long term</p> Signup and view all the answers

    Which management approach is crucial for effective innovation streams?

    <p>Balancing exploration and exploitation demands</p> Signup and view all the answers

    What is essential for achieving breakthrough innovation according to recent findings?

    <p>Shifting managerial identity for new market solutions</p> Signup and view all the answers

    What significant factor influenced the digitalization efforts at Siemens?

    <p>Establishing new operational processes</p> Signup and view all the answers

    What balance is essential for organizations to build new corporate businesses?

    <p>Balancing integration and differentiation</p> Signup and view all the answers

    What is one common misconception about radical innovation in firms?

    <p>It's only achievable by large multinational corporations</p> Signup and view all the answers

    How do firms manage discontinuous technological change according to Birkinshaw, Zimmerman, & Raisch?

    <p>Bridging both dynamic capabilities and organizational ambidexterity to remain adaptable.</p> Signup and view all the answers

    What is the primary impact of AI on knowledge worker productivity as suggested by Dell'Aqua et al.?

    <p>Enhancing productivity in tasks that fall within the AI's technological frontier.</p> Signup and view all the answers

    What factors moderate the relationship between differentiation and corporate entrepreneurship according to Burgers & Covin?

    <p>Organizational size and environmental dynamism.</p> Signup and view all the answers

    What benefit does internal corporate venturing provide according to Keil, McGrath, & Tukiainen?

    <p>It encourages the creation of new capabilities and transforming existing ones.</p> Signup and view all the answers

    What approach do top management teams need to take to balance strategic contradictions according to Smith & Tushman?

    <p>Embrace a culture of experimentation while adhering to established protocols.</p> Signup and view all the answers

    In what way does the research of Keil, McGrath, & Tukiainen emphasize the role of internal corporate venturing?

    <p>It plays a key role in enabling firms to innovate and evolve.</p> Signup and view all the answers

    According to Dell'Aqua et al., how does AI improve productivity specifically?

    <p>By enhancing decision-making through data analysis.</p> Signup and view all the answers

    Which factors play a crucial role in differentiating corporate entrepreneurship according to Burgers & Covin?

    <p>Organizational size and environmental dynamism.</p> Signup and view all the answers

    Which approach enhances organizational performance by blending exploration and exploitation activities?

    <p>Simultaneously engaging in both exploration and exploitation activities.</p> Signup and view all the answers

    What structure is recommended for managing radical innovation within organizations?

    <p>A dedicated unit specifically responsible for radical innovation projects.</p> Signup and view all the answers

    Which characteristic is essential for fostering organizational ambidexterity?

    <p>A decentralized culture that promotes trust and a shared vision.</p> Signup and view all the answers

    How does organizational identity influence technological changes?

    <p>It shapes how firms react to and perceive technological changes.</p> Signup and view all the answers

    What is a possible consequence of relying solely on immediate results in innovation?

    <p>Diminished capacity for radical changes.</p> Signup and view all the answers

    Which factor is likely to hinder effective decision-making under uncertainty?

    <p>Maintaining a purely rational approach.</p> Signup and view all the answers

    What do frequent small failures in R&D primarily lead to?

    <p>Improvements in performance through learning.</p> Signup and view all the answers

    Why is scenario planning beneficial for organizations?

    <p>It reduces decision-making biases and improves long-term decision quality.</p> Signup and view all the answers

    What misconception might exist regarding the use of heuristics in decision-making?

    <p>Heuristics are infallible and always lead to better decisions.</p> Signup and view all the answers

    Which aspect of leadership is critical for promoting organizational ambidexterity?

    <p>Modeling adaptable behavior and fostering a supportive context.</p> Signup and view all the answers

    What is a key argument related to organizational structures for innovation?

    <p>Separating exploration and exploitation can enhance overall innovation performance.</p> Signup and view all the answers

    What is a significant impact of limiting high-risk innovation projects?

    <p>Reduction in learning opportunities from failures.</p> Signup and view all the answers

    How does a decentralized culture affect innovation?

    <p>It fosters trust and encourages innovative thinking.</p> Signup and view all the answers

    What do organizations gain from encouraging frequent small failures?

    <p>Learning opportunities that enhance future success.</p> Signup and view all the answers

    What is essential for enabling organizations to achieve both alignment and adaptability?

    <p>Enabling business units to simultaneously achieve alignment and adaptability</p> Signup and view all the answers

    What does radical innovation require according to O’Connor?

    <p>A systems approach that integrates multiple organizational elements</p> Signup and view all the answers

    Siemens’ digitalization efforts primarily focused on which aspect?

    <p>Transforming both business models and operational processes through digital innovations</p> Signup and view all the answers

    To achieve organizational ambidexterity, which is necessary according to O’Reilly & Tushman?

    <p>Flexible leadership that encourages both exploration and exploitation activities</p> Signup and view all the answers

    What approach does NOT support radical innovation?

    <p>Prioritizing technology without considering market feedback</p> Signup and view all the answers

    What factor contributed to Polaroid's failure in the digital imaging market?

    <p>Core rigidities where the razor/blade model impeded digital innovation.</p> Signup and view all the answers

    How do organizations best manage innovation streams according to Smith & Tushman?

    <p>Simultaneously balancing exploration and exploitation.</p> Signup and view all the answers

    What is necessary for sustaining radical innovation in large firms as stated by O’Connor & DeMartino?

    <p>Establishing a separate, autonomous group that handles radical innovation.</p> Signup and view all the answers

    What defines the success of ambidextrous organizations according to O’Reilly & Tushman?

    <p>They create a unified strategy that links separate exploration and exploitation units.</p> Signup and view all the answers

    What outcome is associated with organizational ambidexterity as found by Gibson & Birkinshaw?

    <p>Increased perceived performance of business units.</p> Signup and view all the answers

    What management approach is discouraged for organizations aiming for innovation according to O'Connor?

    <p>Imposing strict hierarchical rules on innovation teams.</p> Signup and view all the answers

    What is the implication of prioritizing incremental innovation over disruptive innovation?

    <p>It may limit the organization's potential for breakthrough success.</p> Signup and view all the answers

    What does maintaining a unified strategy allow ambidextrous organizations to achieve?

    <p>Enhanced responsiveness to competitive pressures.</p> Signup and view all the answers

    What aspect is most critical for organizations to adapt successfully to technological change?

    <p>The balance between dynamic capabilities and organizational ambidexterity.</p> Signup and view all the answers

    How does corporate culture influence the level of radical innovation in a firm?

    <p>By encouraging risk-taking and exploration within teams.</p> Signup and view all the answers

    What role do internal corporate ventures play in fostering innovation?

    <p>Fostering new capabilities within existing frameworks.</p> Signup and view all the answers

    What is a primary benefit of scenario planning for organizations facing uncertainty?

    <p>Anticipating a diverse range of potential future scenarios.</p> Signup and view all the answers

    Why do individuals rely on heuristics during decision-making according to Tversky & Kahneman?

    <p>Because they simplify choices in uncertain environments.</p> Signup and view all the answers

    How do top management teams (TMTs) influence non-incremental innovation?

    <p>By framing innovation as a strategic priority.</p> Signup and view all the answers

    What conditions often lead to successful breakthrough innovations?

    <p>Allowing autonomy and resources for individuals to explore ideas.</p> Signup and view all the answers

    What strategy is suggested for building successful businesses according to Raish & Tushman?

    <p>Implementing integration and differentiation together.</p> Signup and view all the answers

    What impact do frequent small failures in R&D have on innovation performance?

    <p>They contribute to improved R&amp;D performance through learning.</p> Signup and view all the answers

    How can organizations effectively adapt to technological discontinuities?

    <p>By balancing dynamic capabilities with ambidexterity.</p> Signup and view all the answers

    What aspect of organizational ambidexterity is crucial for enhancing performance?

    <p>Achieving alignment and adaptability simultaneously.</p> Signup and view all the answers

    What is a potential outcome of emphasizing short-term profitability in innovation strategies?

    <p>Ignoring necessary investments in new technologies.</p> Signup and view all the answers

    What characteristic of radical innovation is emphasized by O’Connor?

    <p>It often involves unconventional and groundbreaking ideas.</p> Signup and view all the answers

    What fundamental approach does corporate venturing offer for sustaining innovation?

    <p>It nurtures innovative capabilities within the organization.</p> Signup and view all the answers

    How can firms best adapt to discontinuous technological change?

    <p>Combining dynamic capabilities with ambidextrous organizational structures.</p> Signup and view all the answers

    What is the effect of contextual ambidexterity on organizational performance?

    <p>Allowing employees to switch between alignment and adaptability based on context.</p> Signup and view all the answers

    In what way does AI enhance knowledge worker productivity?

    <p>Boosting productivity in tasks within the AI's technological frontier.</p> Signup and view all the answers

    What drives breakthrough innovation in organizations, according to Schilling?

    <p>The self-efficacy and idealism of individuals who work independently.</p> Signup and view all the answers

    How do internal corporate ventures support innovation according to Keil, McGrath, & Tukiainen?

    <p>By offering flexibility to evade bureaucratic constraints.</p> Signup and view all the answers

    Which strategy enhances a firm's adaptability to technological changes?

    <p>Implementing cross-functional teams for diverse perspectives.</p> Signup and view all the answers

    What is a misconception about AI's role in knowledge work?

    <p>AI can fully replace human workers in all tasks.</p> Signup and view all the answers

    Why is focusing solely on incremental changes often inadequate for innovation?

    <p>It limits a firm's ability to respond to disruptive changes.</p> Signup and view all the answers

    What approach is emphasized for achieving radical innovation according to O’Connor & DeMartino?

    <p>Creating dedicated units with autonomy to handle radical innovation projects.</p> Signup and view all the answers

    According to Maula, Keil, & Zahra (2012), what role does corporate venture capital (CVC) play?

    <p>CVC serves as an alert mechanism for technological discontinuities.</p> Signup and view all the answers

    What is a significant influence of organizational identity as highlighted by Tripsas (2009)?

    <p>It affects how firms adapt to technological changes in dynamic markets.</p> Signup and view all the answers

    How does corporate culture influence innovation, according to Tellis, Prabhu, & Chandy (2009)?

    <p>By encouraging risk-taking and exploration, which drive radical innovation.</p> Signup and view all the answers

    According to Smith & Tushman (2005), managing innovation streams involves which of the following?

    <p>Balancing exploration and exploitation simultaneously to manage strategic contradictions.</p> Signup and view all the answers

    What do Burgers & Covin (2016) suggest about organizational size and environmental dynamism?

    <p>They influence the dynamics of differentiation, integration, and corporate entrepreneurship.</p> Signup and view all the answers

    What is fundamental for sustaining radical innovation according to O’Connor (2008)?

    <p>The ability to sustain continuous learning and adaptation.</p> Signup and view all the answers

    What is dynamic capabilities defined as by Teece (1997)?

    <p>The ability to reconfigure and adapt organizational resources in response to environmental changes.</p> Signup and view all the answers

    According to Raffaeilli, Glynn, & Tushman (2018), what is vital for top management teams (TMT)?

    <p>To support the adoption of non-incremental innovations in large firms.</p> Signup and view all the answers

    What defines dynamic capabilities according to Teece (1997)?

    <p>The ability to integrate, build, and reconfigure internal and external resources in response to environmental changes.</p> Signup and view all the answers

    Which factor significantly influences corporate entrepreneurship as stated by Burgers & Covin (2016)?

    <p>The degree of differentiation and integration within an organization.</p> Signup and view all the answers

    How can organizations effectively manage strategic contradictions within themselves?

    <p>By balancing conflicting demands and maintaining flexibility.</p> Signup and view all the answers

    Which statement reflects a misunderstanding of dynamic capabilities?

    <p>They primarily serve to maintain current operational efficiency.</p> Signup and view all the answers

    Which factor does NOT influence a firm's corporate entrepreneurship?

    <p>The firm's ability to limit exploration and focus on core business lines.</p> Signup and view all the answers

    Which approach is recommended for achieving organizational ambidexterity?

    <p>Creating an environment where both alignment and adaptability are managed.</p> Signup and view all the answers

    What is essential for developing successful new corporate enterprises according to Raish & Tushman?

    <p>Merging integration and differentiation in the same structure.</p> Signup and view all the answers

    What strategy do firms managing radical innovation need to adopt?

    <p>Establishing independent units for high-risk exploration.</p> Signup and view all the answers

    How can firms effectively handle technological discontinuities?

    <p>Aligning dynamic capabilities with ambidextrous strategies.</p> Signup and view all the answers

    What is a significant driver of breakthrough innovation as per Schilling?

    <p>Intense competitive pressures from rivals.</p> Signup and view all the answers

    Which statement aligns with the findings on the management of radical innovation?

    <p>Encouraging freedom in innovation is necessary for high-risk projects.</p> Signup and view all the answers

    Which method has been suggested to foster innovation while maintaining organizational stability?

    <p>Adopting both integration and differentiation mechanisms.</p> Signup and view all the answers

    What is a common misunderstanding regarding the management of innovation processes?

    <p>That innovation requires complete autonomy from core business units.</p> Signup and view all the answers

    What influence does national culture have on innovation?

    <p>Encourages risk-taking behavior and radical innovation.</p> Signup and view all the answers

    What benefit do ambidextrous business units provide over time?

    <p>Enhance perceived business unit performance over time.</p> Signup and view all the answers

    How can senior executives promote ambidexterity in their organizations?

    <p>By modeling adaptable behavior and encouraging organizational alignment.</p> Signup and view all the answers

    Why do individuals rely on heuristics during decision-making?

    <p>Heuristics help simplify decisions under uncertain conditions.</p> Signup and view all the answers

    What relationship exists between technology and organizational identity?

    <p>Organizational identity influences responses to technological changes.</p> Signup and view all the answers

    How does internal corporate venturing enhance innovation?

    <p>By developing new capabilities while protecting core businesses.</p> Signup and view all the answers

    What makes scenario planning effective according to research?

    <p>It allows organizations to predict future trends without biases.</p> Signup and view all the answers

    What is crucial for sustaining radical innovation in large firms?

    <p>Focusing on continuous learning and dynamic capabilities.</p> Signup and view all the answers

    What was a primary aim of digitalization efforts at Siemens?

    <p>To transform both their business model and operations.</p> Signup and view all the answers

    What do small failures in R&D provide according to research?

    <p>They offer valuable lessons for future success.</p> Signup and view all the answers

    What is essential for managing strategic contradictions within organizations?

    <p>Balancing exploration and exploitation effectively.</p> Signup and view all the answers

    What is a fundamental concern regarding heuristics in decision-making?

    <p>They can lead to cognitive biases affecting judgment.</p> Signup and view all the answers

    What is the role of individual idealism in fostering innovation?

    <p>It inspires fresh ideas and approaches to problem-solving.</p> Signup and view all the answers

    What challenge can established firms face in achieving radical innovation?

    <p>Over-reliance on short-term goals that stifle creativity.</p> Signup and view all the answers

    How does internal corporate venturing specifically benefit firms?

    <p>By encouraging the development of new capabilities that transform existing businesses.</p> Signup and view all the answers

    What is one effective strategy for senior executives to promote organizational ambidexterity?

    <p>Modeling adaptable behavior and cultivating a context for exploration and exploitation.</p> Signup and view all the answers

    What is a common misconception about the focus of internal corporate venturing?

    <p>It should always prioritize short-term profitability over long-term development.</p> Signup and view all the answers

    Which of the following statements best reflects how organizational identity affects technological responses?

    <p>Organizational identity significantly influences how firms adapt to technological developments.</p> Signup and view all the answers

    What is an incorrect strategy when trying to balance exploration and exploitation within a firm?

    <p>Prohibiting any form of exploratory innovation to mitigate risks.</p> Signup and view all the answers

    What is a key factor identified by Tversky & Kahneman in decision-making under uncertainty?

    <p>Using heuristics that can lead to biases.</p> Signup and view all the answers

    What issue did Tripsas and Gavetti highlight regarding Polaroid's market failure?

    <p>Rigidities due to their existing business model.</p> Signup and view all the answers

    According to O'Reilly & Tushman, how do ambidextrous organizations achieve a balance between exploration and exploitation?

    <p>By separating them into different units while having a cohesive strategy.</p> Signup and view all the answers

    Meissner & Wulf argue that scenario planning enhances decision-making by:

    <p>Addressing multiple potential future scenarios.</p> Signup and view all the answers

    Birkinshaw, Zimmerman, & Raisch suggest that firms can navigate technological discontinuities by:

    <p>Adopting flexible strategies that allow responsiveness to change.</p> Signup and view all the answers

    What common misconception can occur when firms rely on heuristics in decision-making?

    <p>They often overlook potential biases.</p> Signup and view all the answers

    Which strategy is least effective for an organization aiming to achieve ambidexterity?

    <p>Prioritizing short-term tasks over long-term innovation.</p> Signup and view all the answers

    What is a significant barrier to a firm's ability to innovate, according to the notions of core rigidities?

    <p>Sticking to established business models.</p> Signup and view all the answers

    What is the main contribution of internal corporate venturing according to Keil, McGrath, & Tukiainen?

    <p>Developing new capabilities while transforming existing business models.</p> Signup and view all the answers

    Which approach is identified as best supporting radical innovation by O’Connor & DeMartino?

    <p>Forming dedicated, autonomous units for high-risk projects.</p> Signup and view all the answers

    How does Teece define dynamic capabilities?

    <p>A firm’s ability to reconfigure resources to adapt to market changes.</p> Signup and view all the answers

    What aspect of corporate culture influences radical innovation across nations according to Tellis, Prabhu, & Chandy?

    <p>Encouragement of risk-taking and exploration.</p> Signup and view all the answers

    What do Gibson & Birkinshaw assert contextual ambidexterity enables firms to achieve?

    <p>A balance of innovation and operational efficiency.</p> Signup and view all the answers

    Which factor does Khanna, Guler, & Nerkar link to improved long-term R&D performance?

    <p>Frequent small failures during experimentation.</p> Signup and view all the answers

    What do Raffaeilli, Glynn, & Tushman emphasize about top management team (TMT) framing?

    <p>It supports the introduction of significant innovations.</p> Signup and view all the answers

    Which method is considered by O’Connor (2008) as essential for successful radical innovation?

    <p>An integrated systems approach that merges different elements.</p> Signup and view all the answers

    What do Burgers & Covin state influences differentiation and integration strategies in corporate entrepreneurship?

    <p>Organizational size and environmental dynamism.</p> Signup and view all the answers

    What does Tripsas suggest regarding the relationship between technological advancements and organizational identity?

    <p>Identity shapes reactions to technology changes.</p> Signup and view all the answers

    What is implied by the notion of radical innovation needing support from independent individuals according to Schilling (2017)?

    <p>Leadership control limits the potential of innovation.</p> Signup and view all the answers

    According to the findings of Keil, McGrath, & Tukiainen, what is a common pitfall in focusing solely on external partnerships for innovation?

    <p>It diminishes internal capabilities and knowledge.</p> Signup and view all the answers

    Which argument is made by O’Connor regarding the management of radical innovation projects?

    <p>They require a dedicated approach involving various elements.</p> Signup and view all the answers

    Study Notes

    Core Competencies and Core Rigidities

    • Tripsas and Gavetti (2000) argued that core competencies can become core rigidities, hindering an organization's ability to adapt to change. Polaroid’s adherence to its razor/blade business model, while successful in the past, ultimately impeded its digital innovation and led to its decline.

    Managing Strategic Contradictions

    • Smith & Tushman (2005) Emphasize the importance of balancing exploration and exploitation simultaneously to navigate strategic contradictions, leading to long-term success. Maintaining a balance requires an approach that embraces both exploration and exploitation simultaneously.

    Organizational Ambidexterity

    • O'Reilly & Tushman (2013) suggest that structural ambidexterity, where firms maintain separate units for exploration and exploitation, allows for effective innovation while maintaining strategic alignment.

    Decision-Making Traps

    • Hammond, Keeney, & Raiffa (1998) highlight the importance of considering multiple perspectives and avoiding framing biases that can limit options and lead to suboptimal decisions. Decision-makers often fall into the trap of framing decisions in ways that limit their options.

    Learning from Failures

    • Khanna, Guler, & Nerkar (2016) argue that frequent, small R&D failures provide valuable learning opportunities, ultimately leading to improved R&D performance over time. Small failures in R&D are more valuable for improving overall performance than large failures.

    Corporate Venture Capital (CVC)

    • Maula, Keil, & Zahra (2012) highlight CVC's crucial role in providing early warnings of technological discontinuities and external innovation threats, enabling companies to adapt more effectively to change.

    Digitalization and Organizational Transformation

    • Collis & Tunker (2018) emphasize that digitalization strategies, particularly in Siemens' case, are aimed at transforming business models and operational processes through digital innovations, not merely short-term profit maximization.

    Dynamic Capabilities

    • Teece (1997) proposes that dynamic capabilities are essential for firms' ability to adapt to changing environments and build long-term competitive advantages. They enable firms to sense, seize, and reconfigure resources in response to changing opportunities and threats.

    Scenario Planning

    • Meissner & Wulf (2013) show that scenario planning helps organizations by limiting decision-makers' biases when evaluating long-term options, by encouraging a forward-thinking approach and considering a variety of potential futures.

    Corporate Culture and Radical Innovation

    • Tellis, Prabhu, & Chandy (2009) found that a supportive and innovative corporate culture is crucial for facilitating radical innovation across national borders. A culture that embraces risk-taking, experimentation, and collaboration is essential for fostering radical breakthroughs.

    Multibusiness Diversification and Disruptive Technologies

    • Lange, Boivie, & Henderson (2009) argue that while corporate parents often endorse disruptive technologies, their subsidiaries may struggle to adopt them due to conflicting organizational contexts and incentives. Disruptive technologies often pose a greater threat to established businesses with rigid structures than to more adaptable, leaner subsidiaries, who have greater freedom.

    Framing Non-Incremental Innovation

    • Raffaeilli, Glynn, & Tushman (2018) emphasize the importance of effectively framing non-incremental innovation within established firms to encourage radical change without alienating core business processes. Framing innovation in a way that resonates with established organizational values and practices can help firms avoid resistance and facilitate successful implementation.

    Organizational Ambidexterity (continued)

    • O'Reilly & Tushman (2013) advocate for achieving ambidexterity by establishing separate teams for exploration and exploitation while maintaining strategic alignment, to reduce the friction between these activities and maximize their impact.

    Contextual Ambidexterity

    • Gibson & Birkinshaw (2004) describe contextual ambidexterity as achieving alignment and adaptability within the same unit through shared organizational context. This approach encourages innovation within the same unit by fostering a shared understanding of the organization's goals and values.

    Differentiation and Integration in Corporate Entrepreneurship

    • Burgers & Covin (2016) suggest that differentiation and integration in corporate entrepreneurship are contingent on organizational size and environmental stability. Larger organizations facing higher uncertainty benefit from a more differentiated approach to innovation, whereas smaller organizations operating in stable environments may opt for a more integrated model.

    Breakthrough Innovation and Managerial Identities

    • Perra, Sidhu, & Volberda (2017) highlight the challenge many established firms face with breakthrough innovations due to rigid managerial identities. Managers may resist radical change if it threatens their established roles and power dynamics within the organization. They recommend that organizations foster flexibility and encourage experimentation at all levels to overcome these challenges.

    Ambidexterity and Flexibility

    • O'Reilly & Tushman (2013) emphasize the importance of a flexible leadership style for achieving ambidexterity. Leaders should encourage collaboration between exploration and exploitation teams, and create a culture of open communication and experimentation.

    Technology and Organizational Identity

    • Tripsas (2009) suggests that technology and identity are closely linked in organizations because organizational identity shapes how firms react to technological changes. An organization's values, beliefs, and history influence how it perceives and responds to new technologies, ultimately shaping its technology adoption strategy.

    Breakthrough Innovations

    • Schilling (2017) states that breakthrough innovations are frequently driven by the separateness, self-efficacy, and idealism of individuals within an organization.

    Decision-Making Traps

    • Hammond, Keeney, & Raiffa (1998) highlight that decision-makers often fall into the trap of framing decisions in ways that limit their available options.

    Contextual Ambidexterity

    • Gibson & Birkinshaw (2004) argue that contextual ambidexterity relies on the ability of employees to adapt their behavior to different situations, switching between alignment and adaptability as required.

    Organizational Ambidexterity and Leadership

    • O’Reilly & Tushman (2013) emphasize the critical role of senior leaders in fostering organizational ambidexterity by modeling adaptable behavior and supporting a balanced organizational context.

    Internal Corporate Venturing and Capabilities

    • Keil, McGrath, & Tukiainen (2009) highlight that internal corporate venturing contributes to the creation of new capabilities within established firms.

    Managing Radical Innovation

    • O’Connor & DeMartino (2006) propose that a dedicated group operating independently of the core business is a key structural aspect for managing radical innovation in large firms.

    Organizational Identity and Technology Adoption

    • Tripsas (2009) suggests that organizational identity influences how firms adopt and develop new technologies.

    Corporate Venture Capital and Technological Discontinuities

    • Maula, Keil, & Zahra (2012) argue that corporate venture capital (CVC) acts as an alert mechanism for technological discontinuities by providing early access to emerging technologies and business models.

    Radical Innovation Definition

    • O’Connor (2008) defines radical innovation as innovations that introduce significant market disruption and high uncertainty.

    Successful Innovation Strategy

    • Raish & Tushman (2016) emphasize that a successful innovation strategy necessitates a balance between integration and differentiation.

    Managing Innovation Streams

    • Smith & Tushman (2005) suggest that managing innovation streams effectively requires the ability to simultaneously balance both exploitation and exploration activities.

    Large Firms and Radical Innovation Management

    • O’Connor & DeMartino (2006) observe that large firms can effectively manage radical innovation by creating separate, dedicated units focused on innovation.

    Top Management and Non-Incremental Innovation

    • Raffaeilli, Glynn, & Tushman (2018) argue that top management teams influence non-incremental innovation by framing innovation as a strategic priority for the organization.

    Heuristics in Decision-Making

    • Tversky & Kahneman (1974) discovered that individuals frequently rely on heuristics when making decisions under uncertainty. An example of this is anchoring, where individuals place excessive weight on the initial piece of information they encounter.

    Achieving Digital Innovation

    • Gilsing (2022), in Lecture 3.1, argues that achieving digital innovation necessitates integrating both technology and market-driven approaches.

    AI and Knowledge Worker Productivity

    • Dell’Aqua et al.(2023) note that AI impacts knowledge worker productivity by enhancing worker productivity on specific tasks while disrupting performance in others.

    Corporate Culture and Radical Innovation

    • Tellis, Prabhu, & Chandy (2009) argue that corporate culture plays a significant role in facilitating or hindering radical innovation in global markets.

    Differentiation and Integration in Corporate Entrepreneurship

    • Burgers & Covin (2016) state that the impact of differentiation and integration on corporate entrepreneurship is dependent on organizational size and environmental dynamism.

    R&D Performance in the Pharmaceutical Industry

    • Khanna, Guler, & Nerkar (2016) suggest that R&D performance in the pharmaceutical industry is significantly influenced by learning from small failures, which improves long-term R&D outcomes.

    Strategic Contradictions in Top Management Teams

    • Smith & Tushman (2005) argue that top management teams can navigate strategic contradictions by simultaneously pursuing both exploitation and exploration strategies.

    Dynamic Capabilities

    • Teece (1997) defines dynamic capabilities as a firm’s ability to adjust internal routines to changes in the external environment.

    Organizational Ambidexterity

    • O’Reilly & Tushman (2013) state that organizational ambidexterity is best achieved when a firm dedicates separate teams to exploration and exploitation but maintains a unified strategic focus.

    Cross-Functional Interfaces in Large Organizations

    • Burgers & Covin (2016) found that cross-functional interfaces in large organizations foster corporate entrepreneurship by enabling knowledge sharing.

    Top Management Team (TMT) Framing and Innovation

    • Raffaeilli, Glynn, & Tushman (2018) argue that top management team (TMT) framing influences innovation by establishing a clear narrative that supports non-incremental innovations within the firm.

    Sustaining Radical Innovation

    • O’Connor (2008) argues that firms can sustain radical innovation by developing a dynamic capability system that supports continuous learning.

    Polaroid’s Inability in Digital Imaging

    • Tripsas and Gavetti (2000) argue that Polaroid’s inability to succeed in digital imaging was due to managerial cognition and adherence to outdated business models, such as the razor/blade model.

    Drivers of Radical Innovation

    • Tellis, Prabhu, & Chandy (2009) argue that one of the primary drivers of radical innovation across nations is corporate culture that encourages risk-taking and experimentation.

    Organizing for Radical Innovation

    • O’Connor & DeMartino (2006) found that organizing for radical innovation requires a decentralized structure that allows flexibility and autonomy for innovation teams.

    Contextual Ambidexterity

    • Gibson & Birkinshaw (2004) suggest that contextual ambidexterity can be achieved through creating a supportive organizational context where employees manage both alignment and adaptability.

    Balancing Integration and Differentiation

    • Raish & Tushman (2016) argue that a successful balance between integration and differentiation can help organizations build new corporate businesses without jeopardizing existing ones.

    Scenario Planning and Decision-Making

    • Meissner & Wulf (2013) argue that scenario planning reduces decision-making biases and improves long-term decision quality.

    Managing Innovation Streams

    • Smith & Tushman (2005) state that managing innovation streams requires top management teams to balance the contradictory demands of exploration and exploitation simultaneously.

    Breakthrough Innovation and Managerial Identity

    • Perra, Sidhu, & Volberda (2017) argue that breakthrough innovation requires a shift in managerial identity to promote new product-market solutions.

    Digitalization at Siemens

    • Collis & Tunker (2018) found that digitalization at Siemens involved a comprehensive transformation of both business models and operational processes.

    Internal Corporate Venturing and Firm Innovation

    • Keil, McGrath, & Tukiainen (2009) argue that internal corporate venturing contributes to firm innovation by enabling firms to develop new capabilities and transform existing ones.

    Firm Adaptation to Discontinuous Technological Change & Ambidexterity

    • Firms adapt to discontinuous technological change by bridging dynamic capabilities and organizational ambidexterity to remain adaptable - Birkinshaw, Zimmerman & Raisch (2016)
    • Firms achieve success by separating exploration and exploitation into different units - O'Reilly & Tushman (2013)
    • Ambidextrous organizations require a decentralized culture that promotes trust and shared vision - Gibson & Birkinshaw (2004)
    • Senior executives play a key role in adapting by modelling adaptable behavior and fostering a supportive organizational context - O’Reilly & Tushman (2013)

    Innovation Management & Breakthrough Innovation

    • Internal corporate venturing helps to encourage the creation of new capabilities and transforming existing ones - Keil, McGrath & Tukiainen (2009)
    • Top management teams must balance strategic contradictions by simultaneously engaging in both exploration and exploitation activities - Smith & Tushman (2005)
    • Radical innovation management requires a dedicated unit specifically responsible for radical innovation projects - O’Connor & DeMartino (2006)
    • Breakthrough innovation is often facilitated by the separateness, self-efficacy, and idealism of individuals within organizations - Schilling (2017)

    Decision-Making & Heuristics

    • Heuristics simplify decision-making but can lead to biases - Tversky & Kahneman (1974)
    • Scenario planning helps organizations reduce decision-making biases and improve long-term decision quality - Meissner & Wulf (2013)

    Non-incremental Innovation Adoption

    • Top management team (TMT) framing plays a critical role in supporting the adoption of non-incremental innovations by incumbent firms - Raffaeilli, Glynn & Tushman (2018)

    R&D & Learning

    • Frequent small failures in R&D help improve overall performance through learning - Khanna, Guler & Nerkar (2016)

    Technology, Identity & Organizational Change

    • Organizational identity shapes how firms react to technological changes - Tripsas (2009)

    Dynamic Capabilities

    • Dynamic capabilities refer to the firm’s ability to adapt, integrate, and reconfigure internal and external resources in response to environmental changes - Teece (1997)

    AI & Knowledge Worker Productivity

    • AI enhances productivity in tasks that fall within its technological frontier - Dell'Aqua et al. (2023)

    Differentiation & Corporate Entrepreneurship

    • The relationship between differentiation and corporate entrepreneurship is moderated by organizational size and environmental dynamism - Burgers & Covin (2016)

    Polaroid's Failure in Digital Imaging

    • Polaroid's failure in the digital imaging market was due to core rigidities, where the razor/blade model impeded digital innovation.

    Balancing Exploration and Exploitation

    • Organizations can manage innovation streams by simultaneously balancing exploration and exploitation.

    Sustaining Radical Innovation

    • Radical innovation in large firms can be sustained by establishing a separate, autonomous group that handles radical innovation.

    Ambidextrous Organizations

    • Ambidextrous organizations are successful when they create a unified strategy that links separate exploration and exploitation units.

    Organizational Ambidexterity and Performance

    • Organizational ambidexterity leads to increased perceived performance of business units.

    Organizational Adaptability

    • Organizational adaptability to technological change depends on how firms balance dynamic capabilities and ambidexterity.

    Corporate Culture and Radical Innovation

    • Corporate culture affects radical innovation by promoting risk-taking and exploration.

    Corporate Ventures and Capability Development

    • Internal corporate ventures help firms by fostering the development of new capabilities within existing business structures.

    Scenario Planning and Cognitive Biases

    • Scenario planning is useful because it allows organizations to anticipate a wide range of future possibilities, reducing cognitive biases.

    Heuristics and Decision-Making

    • Individuals rely on heuristics because they provide a faster and more efficient way to make decisions under uncertainty.

    TMT Role in Non-Incremental Innovation

    • Top management teams (TMTs) play a key role in promoting non-incremental innovation by framing innovation as a core strategic priority within the organization.

    Breakthrough Innovation and Autonomy

    • Breakthrough innovation often occurs when individuals within the organization are given autonomy and resources to pursue their ideas.

    Successful New Businesses

    • Organizations can build successful new businesses by combining both integration and differentiation strategies.

    Frequent Small Failures in R&D

    • Frequent small failures in R&D contribute to improved long-term R&D performance through organizational learning.

    Adapting to Technological Discontinuities

    • Firms can adapt to technological discontinuities by balancing dynamic capabilities with organizational ambidexterity.

    Organizational Ambidexterity and Alignment

    • Organizational ambidexterity improves performance by enabling business units to simultaneously achieve alignment and adaptability.

    Radical Innovation and a Systems Approach

    • Radical innovation requires a systems approach that integrates multiple organizational elements.

    Siemens' Digitalization Efforts

    • Siemens' digitalization efforts focused on transforming both business models and operational processes through digital innovations.

    Achieving Organizational Ambidexterity

    • Achieving organizational ambidexterity requires flexible leadership that encourages both exploration and exploitation activities.

    Organizational Adaptation to Discontinuous Technological Change

    • Birkinshaw, Zimmerman, & Raisch (2016) recommend combining dynamic capabilities (ability to reconfigure resources for change) with ambidextrous organizational structures to adapt to discontinuous technological change.
    • Ambidextrous structures allow firms to balance exploration (innovation) with exploitation (efficiency) for long-term success.

    Contextual Ambidexterity

    • Gibson & Birkinshaw (2004) argue that contextual ambidexterity, where employees can adapt to different situations, is crucial for organizational performance.
    • This flexibility enables employees to align with existing strategies and adapt to new challenges, depending on the context.

    AI and Knowledge Worker Productivity

    • Dell'Aqua et al. (2023) discovered that AI enhances productivity for knowledge workers in tasks within AI's technological frontier.
    • AI assists in automating and optimizing tasks within its scope, leading to efficiency gains.

    Breakthrough Innovation

    • Schilling (2017) emphasizes the role of individuals' self-efficacy and idealism in driving breakthrough innovation.
    • Independent individuals with strong belief in their ideas significantly contribute to radical innovation within organizations.

    Internal Corporate Ventures and Innovation

    • Keil, McGrath, & Tukiainen (2009) argue that internal corporate ventures (ICVs) are crucial for developing new capabilities within established business lines.
    • ICVs allow companies to explore new markets and technologies without disrupting existing operations, fostering innovation.

    Corporate Venture Capital (CVC) and Technological Discontinuities

    • Maula, Keil, & Zahra (2012) state that CVC serves as an alert mechanism for identifying technological discontinuities.
    • CVC allows companies to invest in startups and monitor emerging technologies, keeping them aware of disruptive trends.

    Organizational Identity and Technological Change

    • Tripsas (2009) highlights that organizational identity influences how firms adapt to technological change in dynamic markets.
    • A firm's values, beliefs, and past experiences shape its response to technological shifts, impacting its ability to adapt.

    Corporate Culture and Radical Innovation

    • Tellis, Prabhu, & Chandy (2009) found that a corporate culture encouraging risk-taking and exploration fosters radical innovation.
    • Cultures that prioritize experimentation and embrace uncertainty enable companies to develop bold, new ideas.

    Balancing Exploration and Exploitation

    • Smith & Tushman (2005) argue that managing innovation streams requires balancing exploration (new ideas) with exploitation (existing resources).
    • This strategic contradiction necessitates a careful approach to ensure both stability and adaptation.

    Organizing for Radical Innovation

    • O’Connor & DeMartino (2006) suggest creating dedicated units with autonomy to handle radical innovation projects.
    • Separating radical innovation efforts from the core business allows for more experimentation and flexibility.

    Top Management Team (TMT) Framing

    • Raffaeilli, Glynn, & Tushman (2018) argue that TMT framing is vital for supporting non-incremental innovations in large companies.
    • TMTs play a crucial role in setting the strategic direction and influencing the acceptance of disruptive innovations.

    Organizational Size and Environmental Dynamism

    • Burgers & Covin (2016) found that organizational size and environmental dynamism influence the relationship between differentiation (offering unique products/services), integration (coordination across departments), and corporate entrepreneurship.
    • Companies need to adapt their organizational structure and innovation strategies based on their size and the complexity of their operating environment.

    Successful Radical Innovation

    • O’Connor (2008) argues that successful radical innovation requires continuous learning and adaptation.
    • Companies need to be constantly learning from market feedback and adapting their strategies to ensure long-term success.

    Dynamic Capabilities

    • Teece (1997) defines dynamic capabilities as the ability to reconfigure and adapt organizational resources in response to environmental changes.
    • This dynamism is crucial for organizations to successfully navigate the ever-changing business landscape.

    Organizational Ambidexterity

    • Gibson & Birkinshaw (2004): Organizational ambidexterity is achieved through a supportive environment that allows employees to manage alignment and adaptability
    • Gibson & Birkinshaw (2004): Companies with ambidextrous business units tend to have improved performance over time.
    • Birkinshaw, Zimmerman, & Raisch (2016): Success in navigating technological discontinuities involves balancing dynamic capabilities and organizational ambidexterity.

    Innovation and Corporate Venturing

    • Raish & Tushman (2016): Creating successful new businesses requires a blend of integration and differentiation within an organization.
    • Schilling (2017): Breakthrough innovation is driven by the autonomy and ideals of individuals within an organization.
    • O’Connor & DeMartino (2006): Firms involved in radical innovation should establish independent units to explore high-risk projects.
    • Keil, McGrath, & Tukiainen (2009): Internal corporate venturing allows organizations to develop new capabilities while preserving existing business lines.

    Managing Innovation Risks

    • Khanna, Guler, & Nerkar (2016): Small failures in R&D can provide learning opportunities that enhance long-term performance
    • O’Connor (2008): Large businesses can sustain radical innovation by prioritizing continuous learning and dynamic capability development.

    The Role of Culture

    • Tellis, Prabhu, & Chandy (2009): National culture plays a role in encouraging risk-taking behavior and radical innovation.

    The Impact of Organizational Identity

    • Tripsas (2009): A firm's identity shapes their response to technological changes.

    Decision-Making and the Future

    • Tversky & Kahneman (1974): Individuals use heuristics in decision-making to simplify choices in uncertain situations.
    • Meissner & Wulf (2013): Scenario planning assists organizations in anticipating future uncertainties and minimizing decision-making biases.

    Leadership and Change

    • O’Reilly & Tushman (2013): Senior executives can promote ambidexterity through modeling adaptability and encouraging organizational alignment.

    Digital Transformation

    • Collis & Tunker (2018): Siemens' digitalization efforts aim to transform both their business model and operational processes.

    Dynamic Capabilities

    • Teece (1997): Dynamic capabilities allow organizations to adapt to environmental changes by integrating, building, and reconfiguring internal and external resources.

    Corporate Entrepreneurship

    • Burgers & Covin (2016): Corporate entrepreneurship is influenced by the level of differentiation and integration within an organization.

    Strategic Contradictions

    • Smith & Tushman (2005): Balancing exploration and exploitation is essential for managing strategic contradictions within an organization,

    Decision-Making and Biases

    • Tversky & Kahneman (1974): Decision-making under uncertainty often relies on heuristics – mental shortcuts that simplify decision-making but can introduce biases.

    Polaroid's Failure in Digital Imaging

    • Tripsas and Gavetti (2000): Polaroid's failure to succeed in the digital camera market was due to core rigidities stemming from their reliance on the razor/blade business model. This model, which depended on selling both cameras and film, prevented them from adapting to the changing market.

    Organizational Ambidexterity

    • O’Reilly & Tushman (2013): Successful ambidextrous organizations manage exploration (seeking new opportunities) and exploitation (optimizing existing activities) by separating these functions into different organizational units while maintaining a unified strategy.

    Scenario Planning and Decision-Making

    • Meissner & Wulf (2013): Scenario planning improves decision-making by reducing cognitive biases by considering multiple future scenarios. This helps firms make more informed decisions in uncertain environments.
    • Birkinshaw, Zimmerman, & Raisch (2016): Firms can navigate technological discontinuities by balancing dynamic capabilities (the ability to reconfigure resources) with organizational ambidexterity. This allows them to adapt to disruptive changes while maintaining their core business.

    Breakthrough Innovation and Individualism

    • Schilling (2017): Breakthrough innovation is often driven by independent individuals who possess self-efficacy (belief in their abilities) and idealism. These individuals are willing to take risks and challenge the status quo to pursue new ideas.

    Internal Corporate Venturing and Innovation

    • Keil, McGrath, & Tukiainen (2009): Internal corporate venturing contributes to firm innovation by developing new capabilities while transforming existing business models. This allows firms to experiment with new ideas and technologies without disrupting their core operations.

    Supporting Radical Innovation

    • O’Connor & DeMartino (2006): Radical innovation is best supported by creating dedicated, autonomous units to handle high-risk innovation projects. These dedicated units provide the space and resources for radical ideas to develop without being stifled by the constraints and priorities of established businesses.

    Dynamic Capabilities and Market Adaptability

    • Teece (1997): Dynamic capabilities are a firm's ability to reconfigure resources in response to changing market conditions. This allows firms to leverage their resources to seize new opportunities or adapt to threats.

    Culture and Radical Innovation

    • Tellis, Prabhu, & Chandy (2009): Radical innovation across nations is influenced by a corporate culture that encourages risk-taking and exploration. This cultural environment supports experimentation, learning, and the pursuit of groundbreaking ideas.

    Contextual Ambidexterity and Organizational Alignment

    • Gibson & Birkinshaw (2004): Contextual ambidexterity allows firms to achieve both alignment and adaptability by creating the right organizational context. This involves establishing structures and processes that support both exploration and exploitation, allowing firms to navigate complex and dynamic environments.

    Learning from Failures in R&D

    • Khanna, Guler, & Nerkar (2016): Frequent small failures in R&D lead to improved learning and long-term R&D performance. This suggests that embracing and analyzing failures is crucial for ongoing innovation.

    TMT Framing and Innovation

    • Raffaeilli, Glynn, & Tushman (2018): Top management team (TMT) framing is important for supporting the introduction of non-incremental innovations in incumbent firms. The way TMTs communicate and shape the vision for innovation significantly influences a firm's willingness to embrace change.

    Systems Approach to Radical Innovation

    • O’Connor (2008): Successful radical innovation requires a systems approach that integrates various organizational elements. This involves aligning different aspects of the organization – such as culture, leadership, structure, and processes – to support the pursuit of radical innovation.

    Differentiation and Integration in Corporate Entrepreneurship

    • Burgers & Covin (2016): Differentiation and integration strategies in corporate entrepreneurship are affected by organizational size and environmental dynamism. Larger firms may struggle to innovate quickly, while rapidly changing environments require quick adaptation and flexibility.

    Technological Advancements and Organizational Identity

    • Tripsas (2009): Technological advancements and organizational identity are closely linked because organizational identity shapes how firms react to new technological developments. This means that firms tend to embrace innovations that align with their core values, capabilities, and identity.

    Internal Corporate Venturing and Business Transformation

    • Keil, McGrath, & Tukiainen (2009): Internal corporate venturing helps firms by encouraging the development of new capabilities that transform existing businesses. This allows firms to create new markets, products, and services, leading to growth and long-term success.

    Fostering Organizational Ambidexterity

    • O’Reilly & Tushman (2013): Senior executives can foster organizational ambidexterity by modeling adaptable behavior and promoting an organizational context for both exploration and exploitation. This involves creating a culture that values both innovation and efficiency, encouraging risk-taking and embracing change.

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    This quiz covers essential concepts in strategic management, including core competencies and rigidities, managing strategic contradictions, and organizational ambidexterity. It also explores decision-making traps and their implications for effective strategy execution.

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