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

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  • 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
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    References listed on IDEAS

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    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.

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