Why Is It Easier for New Entrants to Involve in Radical

question 102

Multiple Choice

Why is it easier for new entrants to involve 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:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, and to understand that others have beliefs, desires, and intentions that are different from one's own.

Apprenticeship

A system for training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study (classroom work and reading).

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and to others.

Intuitive Psychology

The natural ability to understand and make predictions about others' thoughts, feelings, and behaviors without extensive formal learning.