Why Is It Easier for New Entrants to Get Involved

question 90

Multiple Choice

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?

• A) Unlike incumbent firms, new entrants do not have to face the high entry barriers, initially.
• B) New entrants are embedded in an innovation ecosystem, while incumbent firms are not.
• C) Unlike incumbent firms, new entrants do not have formal organizational structures and processes.
• D) Incumbent firms do not have the advantages of network effects that new entrants have.

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Definitions:

Concept

An abstract idea or a general notion that represents something in a concise and comprehensive way.

Characteristic

A feature or quality that helps to identify, tell apart, or describe recognizably; a distinguishing trait.

Passive

A term describing a lack of action or initiative, often allowing things to happen without trying to change the outcome.

Negative Client Feedback

Criticisms or expressions of dissatisfaction from clients regarding a service or product.