Successful Entrepreneurship and Innovative Strategies in China: The Experience of BYD
Jane P. Wu, Professor, HSBC Business School, Ya-Ting Kuo,
Peking University National
Ph.D. Candidate, Dep. of Business Administration, Taiwan University
BYD Company Limited (BYD for short), a Chinese IT and Auto corporation, drew global attention due to being the second largest mobile energy supplier in the world and a leading rechargeable battery manufacturer as well as auto maker. Its legendary founder and CEO, Wang Chuanfu, is appraised by Fortune as ‘a combination of Thomas Edison & Jack Welch’ and a typical miniature of the Chinese entrepreneurs for the past 30 years. This article aims to analyze what BYD’s success comes from. On one hand, the innovative R&D and production modules have created its competitive advantage with a solid core competence in the market. On the other hand, its internationalization strategy has facilitated a swift expansion capturing a large market share in a short period of time. By analyzing and integrating the results of case study, we find the importance of success factors for manufacturing industry in BYD. The main conclusions of this study are as the following: 1. The importance of successful entrepreneurship of the founder of BYD. 2. The importance of successful innovative strategies focused on "hardly imitative technology", "difficultly substitute product", and "more flexible organization".
Keywords: entrepreneurship; innovative strategies;
International e‐Journal of Business & Technology Leadership
1. Introduction In a world of ever increasing global economy, the idea of entrepreneurial leadership has become a crucial theme that leaders and managers need not only be aware of conceptually but also understand in order to be able to strategize and position for organizational viability. In order to succeed and make a competitive advantage for organization, the organization must set a vision that encourages growth, rewards risk taking and leverage innovation by adapting to the fluctuating global economy. The key factor to successful organization in the present competitive and dynamic environment is the need to adopt an entrepreneurial leadership – seeking competitive advantage through continuous innovation by effectively identifying and exploiting opportunities in order to sustain and grow. However, little is known about how china's organizations develop their capabilities and learn through entrepreneurial leadership and innovative strategies. In many cases, it is clear from many studies that the entrepreneurial leadership and innovative strategies promote regional enterprises to turn into global enterprises. This article collects secondary data to understand the various aspects of how BYD’s success is involved in the successful entrepreneurial leadership through innovative strategies . 2. Literature Review 2.1 Entrepreneurship According to Zhara et al., (1999), different scholars use different expressions to characterize entrepreneurship (e.g., Entrepreneurship , Corporate Entrepreneurship, Intrapreneurship, Entrepreneurship Posture, Entrepreneurial Orientation). However, contrary to the variety of expressions used to characterize entrepreneurship, there is consistency regarding entrepreneurship’s definition and measurement. Generally speaking, entrepreneurship based research usually focus on either Traits or Behavior. Gartner (1988) argues that the focus should be on “what the entrepreneur does” and not “who is the entrepreneur”. Behavior based research focus on the entrepreneurship process through the entrepreneur activities, that instead of referring to personal specific traits (Smart and Conant, 1994). In other words, entrepreneurship emphasize the entrepreneurial process (entrepreneurs carrying out new combinations) and innovativeness (Guth & Ginsberg, 1990). Besides,...