Lecture 2+3

Question 1

What are the 3 steps of innovation strategy?

Answer 1

• strategic analysis, what could we do?
• strategic selection, what are we going to do and why?
• strategic implementation, how are we going to make it happen?

Question 2

What are the 4 dimensions for innovation? (4P’s)

Answer 2

• product
• process
• position
• paradigm

Question 3

What is path dependency?

Answer 3

That some moves are not realistic to make because they don’t fit the ‘path’

Question 4

What are 2 examples of postures?

Answer 4

• mover
• fast follower

Question 5

What is important with a strategic vision? Why is that important for leaders and employees?

Answer 5

• That everyone alines with it so the vision can truly be implemented
• Leaders create the strategy but the employees have to execute it in smaller projects

Question 6

What are the 3 key components of innovation strategy according to dynamic capability?

Answer 6

• competitive and national position
• technological paths
• organizational and managerial processes

Question 7

What is the core role in innovation management?

Answer 7

appropriately adapting, integrating and reconfiguring internal and external organizational skills, resources and functional competencies towards a changing environment

Question 8

What is the main challenge with creating a sustainable competitive advantage?

Answer 8

making the uniqueness and core competencies of the firm the source

Question 9

What does VRIN mean?

Answer 9

• valuable
• rare
• inimitable
• non-substitutable

Question 10

What does resource-based view mean?

Answer 10

that competitive advantage is drive by VRIN because the resources are heterogeneous

Question 11

What does dynamic capabilities mean?

Answer 11

the capacity of an organization to purposefully create, extend, or modify its resource base

Question 12

What are the 3 steps to identify capabilities?

Answer 12

• identifying the key attributes of the most successful products and services
• mapping these attributes to the resources or competencies of the organization
• assessing the potential for sustaining, protecting and exploiting these resources

Question 13

What are the 3 conditions for a sustainable competitive advantage?

Answer 13

• clear difference from competitors
• that difference is a direct consequence of a capability gap between the producer and competitors
• both are expected to endure

Question 14

What are the 4 types of resource capability?

Answer 14

• regulatory (legal entities)
• positional (reputation)
• business system
• organizational characteristics

Question 15

What are the 2 factors that depend if a firm successfully uses their capabilities?

Answer 15

• the capacity to transform them into viable products/services
• the capacity to defend that from competitors

Question 16

What are the 9 factors which influence the commercial succes of the capabilities?

Answer 16

• secrecy
• accumulated tacit knowledge
• lead times and after-sales service (protection against imitation)
• learning curve (low cost high knowledge)
• complementary assets
• product complexity
• standards (acceptance)
• pioneering radical new product
• strength of patent protection

Question 17

What are inducements and participants?

Answer 17

• payment, job satisfaction
• labour, ideas

Question 19

What is the difference between mi and bt on inducements and job alternatives?

Answer 19

• mi= only loan, bt= multiple inducements
• mi= alternatives are well known work at the highest payment, bt= aspiration level move when to far away form inducements

Question 20

What is the firm’s goal?

Answer 20

satisfice not most profitable

Question 21

What does coalition of participants mean?

Answer 21

each participant has their own goals, have to work together but there could be a difference in bargaining power

Question 22

What is organizational slack?

Answer 22

the difference between total resources and total payments necessary to preserve the coalition

Question 23

What is bounded rationality?

Answer 23

We are not able to compare everything correct. This is because of biases and we try to make fast decisions with heuristics.

Question 24

What are the 4 strategies in decision making?

Answer 24

• debiasing
• nudging
• encouraging dissent
• routines (checklist)

Question 25

What are the 2 levels of strategies?

Answer 25

• competitive/business strategie= how mangers compete in industry
• corporate strategie= where the firm competes in the industry

Question 26

What is the difference between normative and descriptive?

Answer 26

normative= what firms should do
descriptive= what they actually do

Question 27

Explain what the main paradigm was in the 50’s and 60’s

Answer 27

s-c-p paradigm
- structure= of industry, e.g barriers
- conduct= behaviour
- performance= profitability

Question 28

What are the two most successful strategies?

Answer 28

• cost leadership= low unit cost on high scale
• product differentiation

Question 29

What are operational capabilities?

Answer 29

capabilities that a firm needs to keep existing