Mock Exam Flashcards
In Arora et al. (2017), the authors discuss a decline in research: describe the trend and why it matters
The share of basic research in R&D is declining. Firms still invest in technology, but not in the science behind it, and reduce the value of scientific capabilities. Alternatively: the number of patents is going up, but the number of publications is down.
It matters because science is still important for inventions, absorptive capacity is becoming more important, and using patents/tacit knowledge reduces the knowledge that is shared with the public (more generally: there are no good reasons for this decline)
Discuss how a dominant design and subsequent innovation patterns (as discussed in the session on science, technology, and innovation) relate to the different types of innovation distinguished by Henderson & Clark (1990)
A dominant design fixes the architecture of a product, so after the architecture is stable, subsequent innovation patterns happen at the component level (alternative: subsequent innovations can be considered modular innovations). A breakthrough (at the beginning or end of a cycle) is a radical innovation.
How does an ambidextrous organization (as described by O’Reilly & Tushman, 2004) solve the exploration/exploitation problem?
By 1) separating explorative and exploitative units, and by 2) having an integrating function at the top of the
organization to bring the two together
Managing the exploration-exploitation dilemma is of key importance for the long-term success of organizations.
In class, we have discussed the concept of ambidexterity as a way of managing the tension between exploration and exploitation. In the introductory example of session 4, we looked at different companies (e.g. Google, IBM)
and how they use elements of structural and contextual ambidexterity to achieve a balance between exploration and exploitation. What are the advantages of each of these two approaches as solutions to the explorationexploitation dilemma?
→ Advantages of structural ambidexterity:
− there is a clear line in which part of the organization’s exploration and exploitation is happening as they are
done in separate units or teams
− the manager of the company can then bring everything together and see what is possible to implement
→ Advantages of contextual ambidexterity:
− everyone can do exploration and exploitation when they want which might increase the motivation of the
employees and give them more flexibility
− with this approach people who are normally not that creative have the chance to express their ideas
Claudio Feser discussed in his guest lecture that the relationship between ambidexterity and firm performance is U-shaped. Please explain briefly what this means.
→ Over-emphasizing exploitation: missing out on opportunities for adaptation
→ Over-emphasizing exploration: lack of results and limited ability to invest in the future
What are the main types of attention in individuals?
→ Two types of attention: Bottom-up and Top-down.
Bottom-up: the attention is generated by an external factor. It happens without our intention.
Top-down: the attention is based on intention because we want to focus on it.
ARECO is a company that spun out of its parent company, IMRA Europe. This process started in 1997 when Michel Gschwind developed a venture proposal. This proposal was based on technology developed in IMRA, but IMRA didn’t want to pursue this venture plan. In the end, Michel Gschwind negotiated a spinout construction for his venture, ARECO. What were the advantages for IMRA, and ARECO, to engage in a spinout construction?
Describe one advantage for IMRA and two for ARECO.
→ Advantages for IMRA: could make money off IPR they were not using themselves, signaling goodwill to the community.
→ Advantages for ARECO: freedom to pursue projects outside the corporate bureaucracy, capitalize on an
opportunity not taken, and be backed by a large firm for IPR and technology.
Which of the following is NOT a supported claim, in Cirillo, Brusoni & Valentini’s (2013) study on spinouts?
Please identify the False statement
− Long-tenured employees benefit more from the spinout experience than short-tenured employees
− Inventors that join a spinout decrease the extent to which they rely on parent organizations’ knowledge
− Inventors that join a spinout do so because they want to explore new technological fields
− Inventors that join a spinout increase the extent of exploration in their inventive activities
− Inventors that join a spinout do so because they want to explore new technological fields
Describe and give examples of modular innovation and architectural innovation
→ Modular: Core concept changes but the linkages between components do not change (e.g. better screen for a computer)
→ Architectural: Core concept does not change but the linkages between components change (e.g. desktop
speaker)
What are the main advantages and disadvantages of designing and making modular products? Name two
advantages and two disadvantages.
→ Advantages: increased efficiency, increased flexibility (more detailed: specialization, coordination, parallel
search, upgradeability, substitution).
→ Disadvantages: costly to put in place, needs the understanding of risks of standard interfaces, variety at cost of performance, the danger of hold-up by suppliers, transaction costs, and tradeoffs in learning.
What is the difference between a product and a platform?
→ A platform is part of an industry-wide ecosystem that is no longer under the full control of the platform owner, even if it contains some propriety elements. A product is largely under one firm’s control.
Which of the following is true about the 3D Printing ecosystem? Please identify the True statement.
− The main reason why 3D printing OEMs are under threat in recent years is the declining use of 3D printing for process innovation
− The main reason why 3D printing OEMs are under threat in recent years is the lack of technical performance
− Complementors in this ecosystem include lasers, lenses and thermal control systems
− The ecosystem risk of “Interdependence” has been addressed by 3D printing OEMs through forward
integration
− The ecosystem risk of “Interdependence” has been addressed by 3D printing OEMs through forward
integration
What does Zuboff (2015) mean by the term ‘Big Other’?
→ Long answer: The term refers to how technology companies, specifically the large and powerful ones, use data and surveillance to create a sense of constant surveillance and monitoring of individuals. It happens by collecting and analyzing personal data, which is then used to create highly detailed profiles of individuals and predict their behavior. The “Big Other” refers to the idea that these companies and the technology they create have an all-knowing and all-seeing presence, similar to the concept of “Big Brother” in George Orwell’s 1984.
Which of the following statements about Spotify is true? Please identify the True statement.
− Spotify, like Tencent Music, relies a lot on social media features to generate revenues
− Spotify subsides one side of its platform by providing a free version to users
− Spotify is excluding the major record labels in their playlists, because the major record labels already have
their playlists
− Playlists on Spotify do not influence the popularity of individual songs
− Spotify subsides one side of its platform by providing a free version to users
