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

Loon, Mark (2016) Innovation in the Local Context – A Case Study of BYD in China. In: Asian Business & Management Special Issue and Conference 2016, Local Context and Challenges of Innovation in China, 11-12 April, 2016, Queen Mary, University of London. (Unpublished)

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Abstract

In this paper we have used the case of BYD to examine firm innovation in the China context.
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 for BYD’s innovation in China.

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