Test Bank
Strategic Management of Technological Innovation 7th Edition By
Melissa Schilling Chapter 1-13
Strategic Management of Technological Innovation — MCQs
🔹 Industry Dynamics
1.
Technological innovation is best defined as:
A. Discovery of new ideas only
B. Implementation of new ideas into practice
C. Marketing strategies
D. Financial investments
Answer: B
2.
The innovation funnel represents:
A. Profit flow
B. Screening of ideas into viable innovations
C. Supply chain process
D. Cost reduction
Answer: B
,3.
Product innovation focuses on:
A. Improving processes
B. New or improved goods/services
C. Reducing costs
D. Hiring staff
Answer: B
4.
Process innovation refers to:
A. New product design
B. Improvements in production methods
C. Advertising
D. Sales strategies
Answer: B
5.
Radical innovation involves:
A. Minor changes
B. Breakthrough changes
C. No change
D. Cost reduction
Answer: B
6.
Incremental innovation is:
A. Disruptive
B. Small improvements over time
C. New invention
D. Market entry
Answer: B
7.
Technology S-curves show:
A. Profit trends
B. Performance improvement over time
C. Costs
D. Marketing strategy
Answer: B
,8.
Dominant design refers to:
A. First product
B. Standard widely adopted design
C. Cheapest design
D. Random design
Answer: B
9.
Network externalities occur when:
A. Demand decreases
B. Value increases with more users
C. Cost rises
D. Technology fails
Answer: B
10.
First-mover advantage includes:
A. Lower risk
B. Brand recognition and market control
C. No benefit
D. Late entry
Answer: B
11.
Late movers benefit from:
A. Higher risk
B. Learning from early entrants
C. No information
D. Higher costs
Answer: B
12.
Switching costs are:
A. Costs of production
B. Costs of changing to another product
C. Marketing cost
D. Innovation cost
Answer: B
, 13.
Path dependency means:
A. Random decisions
B. Past decisions influence future outcomes
C. No influence
D. Only future planning
Answer: B
14.
Technological discontinuity is:
A. Gradual change
B. Breakthrough innovation
C. No change
D. Cost increase
Answer: B
15.
Standardization occurs when:
A. Multiple designs dominate
B. One design becomes dominant
C. No design exists
D. Only cost matters
Answer: B
🔹 Strategy Formulation
16.
Strategic intent refers to:
A. Short-term plan
B. Long-term direction
C. Daily tasks
D. Budget
Answer: B
17.
Core competencies are:
A. Weaknesses
B. Unique strengths
C. Costs
Strategic Management of Technological Innovation 7th Edition By
Melissa Schilling Chapter 1-13
Strategic Management of Technological Innovation — MCQs
🔹 Industry Dynamics
1.
Technological innovation is best defined as:
A. Discovery of new ideas only
B. Implementation of new ideas into practice
C. Marketing strategies
D. Financial investments
Answer: B
2.
The innovation funnel represents:
A. Profit flow
B. Screening of ideas into viable innovations
C. Supply chain process
D. Cost reduction
Answer: B
,3.
Product innovation focuses on:
A. Improving processes
B. New or improved goods/services
C. Reducing costs
D. Hiring staff
Answer: B
4.
Process innovation refers to:
A. New product design
B. Improvements in production methods
C. Advertising
D. Sales strategies
Answer: B
5.
Radical innovation involves:
A. Minor changes
B. Breakthrough changes
C. No change
D. Cost reduction
Answer: B
6.
Incremental innovation is:
A. Disruptive
B. Small improvements over time
C. New invention
D. Market entry
Answer: B
7.
Technology S-curves show:
A. Profit trends
B. Performance improvement over time
C. Costs
D. Marketing strategy
Answer: B
,8.
Dominant design refers to:
A. First product
B. Standard widely adopted design
C. Cheapest design
D. Random design
Answer: B
9.
Network externalities occur when:
A. Demand decreases
B. Value increases with more users
C. Cost rises
D. Technology fails
Answer: B
10.
First-mover advantage includes:
A. Lower risk
B. Brand recognition and market control
C. No benefit
D. Late entry
Answer: B
11.
Late movers benefit from:
A. Higher risk
B. Learning from early entrants
C. No information
D. Higher costs
Answer: B
12.
Switching costs are:
A. Costs of production
B. Costs of changing to another product
C. Marketing cost
D. Innovation cost
Answer: B
, 13.
Path dependency means:
A. Random decisions
B. Past decisions influence future outcomes
C. No influence
D. Only future planning
Answer: B
14.
Technological discontinuity is:
A. Gradual change
B. Breakthrough innovation
C. No change
D. Cost increase
Answer: B
15.
Standardization occurs when:
A. Multiple designs dominate
B. One design becomes dominant
C. No design exists
D. Only cost matters
Answer: B
🔹 Strategy Formulation
16.
Strategic intent refers to:
A. Short-term plan
B. Long-term direction
C. Daily tasks
D. Budget
Answer: B
17.
Core competencies are:
A. Weaknesses
B. Unique strengths
C. Costs
