Exam 16: Organization Structure for Technology Strategy

Corporate ventures accounted for what percentage of all venture capital funds invested in the U.S.?

If the corporate ventures are strategically important and operationally related to your core capabilities, then the new ventures should be part of your core business.

What is an advantage associated with mechanistic structures compared to mechanistic ones?

What is most accurate regarding the amount of money invested in corporate venture groups since the late 1990s?

In 2003, approximately how many U.S. companies operated corporate venture capital units?

Corporate venture capital funds use a venture capital approach to corporate venturing, frequently coinvesting with other financial institutions.

What advantage of acquisitions was SBC Communications attempting to leverage with the acquisition of AT&T allowing the combined company to reduce R&D activities, headquarters staff and other operations?

What percentage of all firms are founded in the same industry as the one in which their founders were previously employed?

Small firms tend to be more innovative than large firms in industries that are younger, less R&D intensive, less concentrated, less capital intensive, less advertising intensive, and more reliant on skilled labor.

If the corporate ventures are strategically important and operationally unrelated to your core capabilities, then the new ventures should be direct spin-offs.

Mechanistic structures permit greater organizational flexibility and adaptability than mechanistic ones.

Although the number of corporate venture groups peaked around 2003, it is still higher than it was in 1999.

Which industry would you expect a small firm to be more innovative than a large one?

The disagreement with employees about how to divide the profit from innovation between them is the most basic explanation for why people create spin-off companies.

Small firms tend to be more innovative in which type of industry?

What is a benefit associated with decentralization?

External equity investment in technology start-ups typically comes from venture capitalist.

What are organizations, generally limited partnerships, called that raise money form university endowments, pension funds, and wealthy individuals to invest in high-technology start-ups called?

What is most likely for corporate venture capital funds?

If a company's core venture is of no strategic importance and the core capability is related, the new venture should be: