Question 1

An effective way to exploit the knowledge within an organization with a high complexity of market knowledge and a high complexity of technological knowledge is:

Accepted Answer

A)  Move information about the technology to where the market is 
B)  Exchange information 
C)  Move information about the market to where the technology is 
D)  Move knowledge by rotating people by temporary co-location

Question 2

Despite the differences that exist among transnational organizations,there is one optimal approach to managing innovation in these firms.

Accepted Answer

A) True 
 B)False

Question 3

Worldwide Consulting Limited is an Italian-based service company with activities in 23 countries.The company operates by embedding a large number of expatriates in foreign subsidiaries,even though the expatriates are not always familiar with the host country to which they are assigned.What is the most important benefit Worldwide Consulting is most likely to achieve through this practice?

Accepted Answer

A)  An exchange of information and knowledge across subsidiaries facilitated by the expatriates. 
B)  The presence of expatriate employees enhances the prestige of the foreign subsidiaries and increases client satisfaction. 
C)  The presence of a large number of expatriates improves employee motivation and reduces employee turnover. 
D)  Having ex-pat employees allows the parent company to keep tighter control of its offshore subsidiaries.

Question 4

Which of the following does not enhance the efficiency of a local-for-local innovation process?

Accepted Answer

A)  Dispersing assets and resources to the subsidiaries and delegating decision-making authority regarding innovations to them. 
B)  Assigning competent headquarter managers to lead development projects within a subsidiary. 
C)  Improving linkages between headquarters and subsidiaries through the use of expatriates. 
D)  Promoting cross-functional integration at the subsidiary level.

Question 5

Local-for-Local innovative processes can be enhanced through integrating subsidiary functions across different levels.At which level are the control and conflict resolution tasks best concentrated?

Accepted Answer

A)  At the project level (called "article team" at Philips), where relatively junior managers from the commercial and technical functions work together 
B)  At the product level, where a team of technical and commercial representatives engage in cross-functional coordination 
C)  At the senior management committee level, where the top commercial, technical, and financial managers in the subsidiary foster subsidiary-level coordination 
D)  All of the above

Question 6

Locally leveraged innovation involves ensuring that the special resources and capabilities of each national subsidiary are available only to that local entity.

Accepted Answer

A) True 
 B)False

Question 7

Traditionally,MNEs developed innovation processes that were either very centralized (resulting in center-for-global innovation),or very decentralized (resulting in local-for-local innovation.)More recently,companies have developed two transnational innovation models.Describe the new models and the advantages they have over the older approaches to innovation.

Accepted Answer

The answer of Traditionally,MNEs developed innovation processes that were either...

Question 8

To make central innovation effective,the purpose of building multiple linkages between headquarters and subsidiaries is to exercise better control over those operations.

Accepted Answer

A) True 
 B)False

Question 9

The most effective way to coordinate knowledge flows in a transnational organization is through the process of formalization.

Accepted Answer

A) True 
 B)False

Question 10

What are the challenges associated with managing a center-for-global innovation process and what are some of the measures that can be employed to ensure that the process is efficient?

Accepted Answer

The answer of What are the challenges associated with managing...

Question 11

In transnational companies like Unilever,products,functions,and geographic regions are coordinated in a differentiated manner,accounting for the respective demands for integration and responsiveness.

Accepted Answer

A) True 
 B)False

Question 12

Emerging strategic demands make organizational models based on interdependence the most appropriate form for headquarter-subsidiary relationships.

Accepted Answer

A) True 
 B)False

Question 13

TechInnovation is a large MNE operating in an environment characterized by rapid changes.During the past 50 years,its subsidiaries have operated independently.Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?

Accepted Answer

A)  TechInnovation could centralize more decision-making to counter-balance the decentralization that has taken place during the past 50 years. 
B)  TechInnovation could create regular cross subsidiary meetings to coordinate activities and resolve differences. 
C)  TechInnovation could break up its value-chain to ensure that subsidiaries perform interrelated activities. 
D)  TechInnovation could develop career paths to routinely transfer managers across subsidiaries.

Question 14

An MNE's ability to develop and slowly diffuse innovations around the world is vital,and in this challenge overseas operations need to take on important new responsibilities.

Accepted Answer

A) True 
 B)False

Question 15

Vito is a consultant advising a major corporation.His client has requested assistance with improving the effectiveness of its innovation process.Vito noticed that the client's subsidiaries enjoy a high degree of independence.Vito suspects that there may be significant risks associated with this degree of independence.What are these risks and what are some alternatives that can be employed to mitigate these risks?

Accepted Answer

The answer of Vito is a consultant advising a major...

Exam 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management

An effective way to exploit the knowledge within an organization with a high complexity of market knowledge and a high complexity of technological knowledge is:

Despite the differences that exist among transnational organizations,there is one optimal approach to managing innovation in these firms.

Which of the following does not enhance the efficiency of a local-for-local innovation process?

Local-for-Local innovative processes can be enhanced through integrating subsidiary functions across different levels.At which level are the control and conflict resolution tasks best concentrated?

Locally leveraged innovation involves ensuring that the special resources and capabilities of each national subsidiary are available only to that local entity.

To make central innovation effective,the purpose of building multiple linkages between headquarters and subsidiaries is to exercise better control over those operations.

The most effective way to coordinate knowledge flows in a transnational organization is through the process of formalization.

What are the challenges associated with managing a center-for-global innovation process and what are some of the measures that can be employed to ensure that the process is efficient?

In transnational companies like Unilever,products,functions,and geographic regions are coordinated in a differentiated manner,accounting for the respective demands for integration and responsiveness.

Emerging strategic demands make organizational models based on interdependence the most appropriate form for headquarter-subsidiary relationships.

TechInnovation is a large MNE operating in an environment characterized by rapid changes.During the past 50 years,its subsidiaries have operated independently.Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?

An MNE's ability to develop and slowly diffuse innovations around the world is vital,and in this challenge overseas operations need to take on important new responsibilities.