Which type of innovation is illustrated by Toyota implementing lean production principles?

• A. Organizational innovation
• B. Process innovation
• C. Marketing innovation
• D. Product innovation

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definitions of different types of innovation. Product innovation refers to the introduction of a new or significantly improved good or service. Process innovation involves the implementation of new or significantly improved production or delivery methods. Organizational innovation relates to new organizational methods in business practices, workplace organization, or external relations. Marketing innovation involves new marketing methods with significant changes in product design or packaging, product placement, product promotion, or pricing.
2. Step 2: Identify what lean production principles are. Lean production is a methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity. It involves changes in the production process to improve efficiency.
3. Step 3: Analyze Toyota's implementation of lean production principles. Since Toyota is changing the way it produces cars by adopting lean production, this is a change in the production process rather than a new product or marketing strategy.
4. Step 4: Match the type of innovation to the example. Because lean production principles improve the production process, this is an example of process innovation.
5. Step 5: Conclude that Toyota's implementation of lean production principles is best classified as process innovation, as it involves new methods in production rather than changes in product, marketing, or organizational structure.