IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v15y2018i02ns0219877018500177.html
   My bibliography  Save this article

Innovation in the Local Context: A Case Study of BYD in China

Author

Listed:
  • Xiaohong Iris Quan

    (Lucas College and Graduate School of Business, San José State University, One Washington Square, San Jose, CA 95192-0164, USA)

  • Mark Loon

    (Bath Business School, Bath Spa University, Newton St Loe, Bath. Postcode)

  • Jihong Sanderson

    (School of Management, Peking University, Beijing, 100871 P. R. China)

Abstract

In this paper, we have used the case of build your dream (BYD) to examine firm innovation in the context of China. From a historical perspective, with its strategic diversification from battery to mobile phone manufacturing to automobile manufacturing, we find that BYD has been innovative in its production method, vertical integration strategy, and design of product for local customers. The effective understanding and leveraging of local contextual factors including supply of labor (especially low cost-highly skilled labor), growing middle class, and local industry environments have played important roles in BYD's innovation in China.

Suggested Citation

  • Xiaohong Iris Quan & Mark Loon & Jihong Sanderson, 2018. "Innovation in the Local Context: A Case Study of BYD in China," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-23, April.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:02:n:s0219877018500177
    DOI: 10.1142/S0219877018500177
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219877018500177
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219877018500177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Seamus Grimes & Debin Du, 2013. "Foreign and Indigenous Innovation in China: Some Evidence from Shanghai," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1357-1373, September.
    3. N/A, 2012. "The UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 221(1), pages 3-3, July.
    4. Nahm, Jonas & Steinfeld, Edward S., 2014. "Scale-up Nation: China’s Specialization in Innovative Manufacturing," World Development, Elsevier, vol. 54(C), pages 288-300.
    5. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    6. Betty Vandenbosch & Argun Saatcioglu & Sharon Fay, 2006. "Idea Management: A Systemic View," Journal of Management Studies, Wiley Blackwell, vol. 43(2), pages 259-288, March.
    7. Brandt, Loren & Thun, Eric, 2010. "The Fight for the Middle: Upgrading, Competition, and Industrial Development in China," World Development, Elsevier, vol. 38(11), pages 1555-1574, November.
    8. David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), 2012. "Technology Transfer in a Global Economy," International Studies in Entrepreneurship, Springer, edition 127, number 978-1-4614-6102-9, December.
    9. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
    10. N/A, 2012. "The UK economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 219(1), pages 3-3, January.
    11. Jianjun Yang & Huafang Liu & Shanxing Gao & Yuan Li, 2012. "Technological innovation of firms in China: Past, present, and future," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 819-840, September.
    12. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2008. "Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 383-400, April.
    13. Dosi, Giovanni, et al, 1997. "Industrial Structures and Dynamics: Evidence, Interpretations and Puzzles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 3-24.
    14. William Lazonick, 2004. "Indigenous Innovation and Economic Development: Lessons from China's Leap into the Information Age," Industry and Innovation, Taylor & Francis Journals, vol. 11(4), pages 273-297.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suneel Kunamaneni, 2019. "CHALLENGES IN MOVING FROM INCREMENTAL TO RADICAL LOW-COST INNOVATION IN EMERGING AND TRANSITION COUNTRIES: Institutional Perspectives Based on Rechargeable Battery Innovation in China and Point-of-Use," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-36, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ileana Palaco & Suk Kyoung Kim & Min Jae Park & Jae Jeung Rho, 2022. "Exploring capabilities of international technology transfer intermediaries between emerging and developed countries," The Journal of Technology Transfer, Springer, vol. 47(1), pages 307-352, February.
    2. Danai Christopoulou & Nikolaos Papageorgiadis & Chengang Wang & Georgios Magkonis, 2021. "IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis," Management International Review, Springer, vol. 61(2), pages 235-266, April.
    3. Scaringella, Laurent & Burtschell, François, 2017. "The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights — Evidence from a joint venture in the construction sector," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 151-169.
    4. Xie, Zongjie & Hall, Jeremy & McCarthy, Ian P. & Skitmore, Martin & Shen, Liyin, 2016. "Standardization efforts: The relationship between knowledge dimensions, search processes and innovation outcomes," Technovation, Elsevier, vol. 48, pages 69-78.
    5. Paul E. Bierly III & Paula S. Daly, 2007. "Alternative Knowledge Strategies, Competitive Environment, and Organizational Performance in Small Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 31(4), pages 493-516, July.
    6. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    7. Stiglitz, Joseph E., 2015. "Leaders and followers: Perspectives on the Nordic model and the economics of innovation," Journal of Public Economics, Elsevier, vol. 127(C), pages 3-16.
    8. Wipo, 2017. "World Intellectual Property Report 2017 - Intangible Capital in Global Value Chains," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2017:944, April.
    9. Agnew, Kerri & Lyons, Ronan C., 2018. "The impact of employment on housing prices: Detailed evidence from FDI in Ireland," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 174-189.
    10. Yu, Yang & Li, Hong & Che, Yuyuan & Zheng, Qiongjie, 2017. "The price evolution of wind turbines in China: A study based on the modified multi-factor learning curve," Renewable Energy, Elsevier, vol. 103(C), pages 522-536.
    11. Louise Lindbjerg & Theodor Vladasel, 2021. "Hiring Entrepreneurs for Innovation," Working Papers 1309, Barcelona School of Economics.
    12. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.
    13. Ebru Dilan & Mehmet N. Aydin, 2019. "An Integrated Framework for Examining Innovation Alignment in Organizations," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-28, June.
    14. Bruce Rasmussen, 2010. "Innovation and Commercialisation in the Biopharmaceutical Industry," Books, Edward Elgar Publishing, number 13680.
    15. Antonio Messeni Petruzzelli & Daniele Rotolo & Vito Albino, 2014. "Determinants of Patent Citations in Biotechnology: An Analysis of Patent Influence Across the Industrial and Organizational Boundaries," SPRU Working Paper Series 2014-05, SPRU - Science Policy Research Unit, University of Sussex Business School.
    16. Xina Yuan & Zhaoyang Guo & Jin Won Lee, 2020. "Good connections with rivals may weaken a firm’s competitive practices: The negative effect of competitor ties on market orientation practices and innovative performance," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 693-718, September.
    17. Arthur Vankan & Koen Frenken & Carolina Castaldi, 2014. "Designing for a Living? Income Determinants Among Firm Founders in the Dutch Design Sector," Industry and Innovation, Taylor & Francis Journals, vol. 21(2), pages 117-140, February.
    18. Anđelković Aleksandra & Milovanović Goran, 2021. "Supplier Selection Process Based on Green Approach," Economic Themes, Sciendo, vol. 59(3), pages 391-407, September.
    19. Stiglitz, J.E., 2016. "An agenda for sustainable and inclusive growth for emerging markets," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 693-710.
    20. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:15:y:2018:i:02:n:s0219877018500177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.