Menon and Pfeffer Offer Two Explanations for Outsider Bias in Knowledge

question 13

Multiple Choice

Menon and Pfeffer offer two explanations for outsider bias in knowledge valuation. The first involves organizational incentives that reward managers when they learn from outsiders; the second best explanation is:

• A) internal knowledge is more readily available and subject to greater scrutiny, whereas "scarce" external knowledge is unique.
• B) managers see internal ideas as developmentally finished and irrelevant to their project at hand.
• C) managers feel that by using internal resource information they would be giving someone else a chance at getting credit or a reward for a good idea.
• D) organizational red tape that slows access to internal knowledge makes managers more interested in researching external knowledge resources.

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Definitions:

Comparative Advantage

The capability of a person or group to perform a specific economic task with greater efficiency than another.

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Small electronic components that contain the computing and logic functions of a device or product.

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Rubber coverings placed around the rims of wheels of vehicles and bicycles to provide traction and absorb shocks, essential for the vehicle's performance and safety.

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.