a. The emergence of a dominant design
b. The shift from product to process innovation
*c. The shift of production from mature to emerging countries
d. Rapid market penetration
31. The duration of the industry life cycle:
[See p.211]
a. Typically extends over a century or more
b. Is determined by the longevity of the firms within the industry
*c. Has become compressed as the pace of technological change has accelerated
d. Depends upon the ability the industry to sustain innovation
32. The different stages of the industry life cycles are defined primarily on the basis of:
[See p.207]
*a. The rate of growth of industry sales
b. The characteristics of competition within the industry
c. The pace of innovation within the industry
d. None of the above
33. The characteristic profile of an industry life cycle has an ‘S’ shaped curve because:
[See p.209
a. It is modeled on the Product Life Cycle, which is also ‘S’ shaped.
b. It is generated by a quadratic function.
c. It reflects the changing pace at which technology is diffused.
*d. It is the result of changes in rates of growth of market demand.
34. Firm entry rates tend to be highest during the growth stage of an industry life cycle because:
[See pp.212-214]
a. Shortage of production capacity keeps margins attractive.
b. The propensity for entrepreneurs and venture capitalists to imitate one another.
,c. Growing legitimacy of the industry attracts resources to the industry.
*d. Both (a) and (c).
35. The transition from the introduction to growth phase of the industry life cycle features:
[See p.209]
a. Increasing product differentiation
b. Declining innovation
c. Offshoring of production
*d. Product innovation giving way to process innovation
36. A dominant design is best described as:
[See p.208]
a. A technical standard
b. The product design chosen by the leading firm in an industry
*c. A common product architecture
d. The culmination of the process of commodification that accompanies industry evolution
37. Which statement best described the extent to which different industries conform to the same life cycle pattern?
[See p.211]
*a. The duration of the life cycle varies from industry to industry
b. The same stages exist whatever the industry
c. All industries have experienced a shortening of the stages of their life cycle
d. Different go through a renewal of their fife cycle at different stages of their development
38. A technical standard tends to emerge in an industry if:
[See p.208]
a. Economies of scale are present
b. The industry has converged around a dominant design
c. The industry is subject to economies of learning
*d. Network effects exist
,39. Industries change mainly as a result of:
[See p.207]
a. Government policies.
*b. The death of existing firms and the birth of new firms.
c. Continuous adaptation by a constant population of firms.
d. Changing customer preferences.
40. “Shakeout”—a period when many firms exit from an industry following a period of intense competition—
characterizes an industry’s transition from:
[See p.213]
a. Introduction to growth stage.
*b. From growth to maturity.
c. From maturity to decline.
d. From product innovation to process innovation.
41. With the onset of the maturity stage, the number of firms in most industries:
[See p.212]
a. Remains stable
*b. Decreases significantly, then stabilizes
c. Rises
d. Rises sharply until shake-out is triggered
42. The term “competency trap”, refers to:
[See p.216]
a. The hubris that affects the senior managers of successful firms.
b. The tendency for firms with competitive advantage based in one industry to fail when they diversify into a new
industry.
*c The tendency for capabilities based on highly developed organizational routines to be a source of inflexibility.
d. The tendency for managers to be reluctant to change the strategies that brought them their initial success.
, 43. According to institutional sociologists, the propensity for organizations to adopt similar structures (“institutional
isomorphism”) is primarily a result of
[See p.216]
a. Common key success factors within an industry.
b. Bounded rationality.
c. The complementarity among different managerial practices within firms’ “activity systems”.
*d. The propensity of firms to imitate one another in order to gain legitimacy.
44. An organizational routine is:
[See p.216]
*a. A stable, repeatable, pattern of coordinated activity among organizational members
b. A lower-level, operational capability, as opposed to a dynamic capability which tends not to be routinized
c. The resource needed to create a new capability
d. A new capability after it has been institutionalized within an organization
45. The field of “organizational ecology” studies:
[See p.218]
a. Companies’ contributions to environmental sustainability.
*b. Changes in the evolution of the population of firms in an industry.
c. The process of competition between different types of firm.
d. Management practices that promote the evolutionary adaptation of firms.
46. Which of the following is not a source of organizational inertia?
[See p.216]
a. The tendency for organizations to limit themselves to local search
b. Organizational routines
c. Complementarities between the different activities of a firm
*d. The hierarchical structure of organizational capabilities where dynamic capabilities reside at a higher level than
operational capabilities
47. When an industry is subject to technological change, the ability of new entrants to displace incumbent firms will
be increased if:
b. The shift from product to process innovation
*c. The shift of production from mature to emerging countries
d. Rapid market penetration
31. The duration of the industry life cycle:
[See p.211]
a. Typically extends over a century or more
b. Is determined by the longevity of the firms within the industry
*c. Has become compressed as the pace of technological change has accelerated
d. Depends upon the ability the industry to sustain innovation
32. The different stages of the industry life cycles are defined primarily on the basis of:
[See p.207]
*a. The rate of growth of industry sales
b. The characteristics of competition within the industry
c. The pace of innovation within the industry
d. None of the above
33. The characteristic profile of an industry life cycle has an ‘S’ shaped curve because:
[See p.209
a. It is modeled on the Product Life Cycle, which is also ‘S’ shaped.
b. It is generated by a quadratic function.
c. It reflects the changing pace at which technology is diffused.
*d. It is the result of changes in rates of growth of market demand.
34. Firm entry rates tend to be highest during the growth stage of an industry life cycle because:
[See pp.212-214]
a. Shortage of production capacity keeps margins attractive.
b. The propensity for entrepreneurs and venture capitalists to imitate one another.
,c. Growing legitimacy of the industry attracts resources to the industry.
*d. Both (a) and (c).
35. The transition from the introduction to growth phase of the industry life cycle features:
[See p.209]
a. Increasing product differentiation
b. Declining innovation
c. Offshoring of production
*d. Product innovation giving way to process innovation
36. A dominant design is best described as:
[See p.208]
a. A technical standard
b. The product design chosen by the leading firm in an industry
*c. A common product architecture
d. The culmination of the process of commodification that accompanies industry evolution
37. Which statement best described the extent to which different industries conform to the same life cycle pattern?
[See p.211]
*a. The duration of the life cycle varies from industry to industry
b. The same stages exist whatever the industry
c. All industries have experienced a shortening of the stages of their life cycle
d. Different go through a renewal of their fife cycle at different stages of their development
38. A technical standard tends to emerge in an industry if:
[See p.208]
a. Economies of scale are present
b. The industry has converged around a dominant design
c. The industry is subject to economies of learning
*d. Network effects exist
,39. Industries change mainly as a result of:
[See p.207]
a. Government policies.
*b. The death of existing firms and the birth of new firms.
c. Continuous adaptation by a constant population of firms.
d. Changing customer preferences.
40. “Shakeout”—a period when many firms exit from an industry following a period of intense competition—
characterizes an industry’s transition from:
[See p.213]
a. Introduction to growth stage.
*b. From growth to maturity.
c. From maturity to decline.
d. From product innovation to process innovation.
41. With the onset of the maturity stage, the number of firms in most industries:
[See p.212]
a. Remains stable
*b. Decreases significantly, then stabilizes
c. Rises
d. Rises sharply until shake-out is triggered
42. The term “competency trap”, refers to:
[See p.216]
a. The hubris that affects the senior managers of successful firms.
b. The tendency for firms with competitive advantage based in one industry to fail when they diversify into a new
industry.
*c The tendency for capabilities based on highly developed organizational routines to be a source of inflexibility.
d. The tendency for managers to be reluctant to change the strategies that brought them their initial success.
, 43. According to institutional sociologists, the propensity for organizations to adopt similar structures (“institutional
isomorphism”) is primarily a result of
[See p.216]
a. Common key success factors within an industry.
b. Bounded rationality.
c. The complementarity among different managerial practices within firms’ “activity systems”.
*d. The propensity of firms to imitate one another in order to gain legitimacy.
44. An organizational routine is:
[See p.216]
*a. A stable, repeatable, pattern of coordinated activity among organizational members
b. A lower-level, operational capability, as opposed to a dynamic capability which tends not to be routinized
c. The resource needed to create a new capability
d. A new capability after it has been institutionalized within an organization
45. The field of “organizational ecology” studies:
[See p.218]
a. Companies’ contributions to environmental sustainability.
*b. Changes in the evolution of the population of firms in an industry.
c. The process of competition between different types of firm.
d. Management practices that promote the evolutionary adaptation of firms.
46. Which of the following is not a source of organizational inertia?
[See p.216]
a. The tendency for organizations to limit themselves to local search
b. Organizational routines
c. Complementarities between the different activities of a firm
*d. The hierarchical structure of organizational capabilities where dynamic capabilities reside at a higher level than
operational capabilities
47. When an industry is subject to technological change, the ability of new entrants to displace incumbent firms will
be increased if:
