Answer the following statements true (T) or false (F)

Question

1. Chicago Cutlery reinstituted a sales contest with the same rules as the one that it used five years ago. This is an example of a process innovation.
2. Entrepreneurs tend to be tolerant of ambiguity.
3. Most organizations experience innovation as a matter of course; it happens naturally as part of everyday business.
4. The three most important ways to encourage innovation are by providing the right organizational culture, a team-based structure, and creative talent.

Answer 1

1. FALSE
A process innovation is a change in the way a product or service is conceived, manufactured, or disseminated. A sales contest like the one that happened five years ago is an adaptive change.
2. TRUE
One quality of entrepreneurs is "a tolerance for ambiguity," Amar Bhidé says. They are willing to jump into things when it's hard to even imagine what the possible outcomes will be, going ahead in the absence of information, very much capital, or even a very novel idea.
3. FALSE
Innovation doesn't happen as a matter of course. Organizations have to develop ways to make it happen over and over.
4. FALSE
Innovation doesn't happen as a matter of course. Organizations have to develop ways to make it happen over and over. Three ways to do so are by providing (1) the right organizational culture, (2) the appropriate resources, and (3) the correct reward system.