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1. Beginning in the 1980s, an age of fragmentation in industrial R&D began to be evident. Of the four
reasons listed below, which one led to further fragmentation of R&D in the U.S.
INCORRECT. The introduction of internal market concepts also led to the further fragmentation of
research and development in the United States.
2. The loss of linkage between technology strategy and corporate strategy (third generation principles)
is likely to lead to significant value erosion for the company. Which of these value erosion sources is
defined by one part of the structure viewing another part as obstructionist?
INCORRECT. Conflict and communication breakdowns; as the linkage is lost, both technology
appropriation or R&D and corporate office begin to develop stereotypes of the other as being
obstructionist, thus leading to significant communication breakdowns.
3. During any specific period of time, a firm will be pursuing a number of technology appropriation
projects that have different strategic implications and technical characteristics. Which of these four
involves creation of knowledge new to the company and enables the firm to alter the rules of
rivalry?
4. The competitive impact of specific technologies varies over competitive domains, and there is a
progression over time from the first to the fourth stage listed below. Which arena would one find
most critical to competitive success?
5. Relative technological competitive strength is a measure of the degree to which a firm has mastery
in a specific set of technologies relative to its competitors. The variance follows a continuum. Which
level has the firm able to express independent technical actions and set new directions?
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INCORRECT. Strong. Here the firm is able to express independent technical action and set new
directions.
6. Of the major steps outlined in the design of a project portfolio, in which sphere would one look for a
series of increasingly demanding screens to enhance the probability that the project ideas are likely
to serve business strategy?
INCORRECT. Portfolio funnel; the total set of R&D projects is subjected to a series of increasingly
demanding screens to enhance the probability that the project ideas that emerge from the
screening are likely to serve business strategy effectively.
7. Competitive position and strategic importance may be juxtaposed to yield four potential technology-
sourcing situations. Which of the following four groups is typified by incomplete or out-of-date
internal knowledge?
INCORRECT. The greatest need for external acquisition is where there are capability gaps: strategic
importance is high, but the company's internal knowledge is incomplete or out of date.
8. Of the sourcing of external technology, which unit is most likely to be used as a consultant for
licensing or applied research?
INCORRECT. Partnering with universities may assume the form of consulting, licensing, applied
research contracts, and the use of specialized facilities.
9. Five managerial behaviors are needed to build a true absorptive capacity with regard to importing
technological capabilities from external sources. Which of the following are people who understand
the source and the receiver and can translate as well as disseminate knowledge.
CORRECT. Boundary spanners are people who understand the source and the receiver and can
translate as well as disseminate knowledge.
10. Application of quality principles embrace four dimensions. Which dimension includes definitions of
clients' expectations, participation of clients, and evaluation of R&D?
INCORRECT. The second dimension is administrative and research processes, including definitions of
clients' expectations, participation of clients, evaluation of R&D processes and reviews, information
systems, and training.
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