Innovation Integration: Fuyao’s Secret of Success

Abstract

An innovation integration model is proposed to explain the reason for Fuyao Glass Manufacturing Group’s success in its market competition. Fuyao’s vertical innovation integrations help the firm to solve the problems of both top-down and bottom-up approaches: Fuyao’s horizontal innovation helps the firm to place process innovation at its core, meanwhile list the technological innovation, product innovation and service innovation as objectives as well as the outcome. Fuyao’s integrated innovation model helped the firm to achieve its high efficiency in its manufacturing and market success and avoid failure of the products in its business environment. The coherent relationships between innovation and market demands are the drivers of a firm’s success. This study contributes to the innovation of literature in two ways. First, both top-down and bottom-up approaches have weaknesses. Innovation integration is the only way an innovative firm can use to avoid the weaknesses of top-down or bottom-up approaches while utilizing the advantages of the two processes. Second, different types of innovation do not stand along, instead, they may be able to complement each other.