Lecture 5 Flashcards
1
Q
How to increase absorptive capacity (recognize external information and assimilate it and apply it for business purposes)
A
By increasing r&d spendinh
2
Q
What is the real option theory? (Two stage)
A
Investments are strategic options that provide the firm with the flexibility to respond to technological developments, investments can be scaled up, continued or abandoned
3
Q
CVC investments mode as an information acquisition mechanism for what?
A
To fix the weaknesses
4
Q
Does partnership and investing in startups lead to competitive advantadge?
A
Often it leads to catching up with rivals, companies must also continue to invest in developing key capabilities internally.
