The Influence of the Innovation on the Performance of the Firm-- Taking Huawei as an Example

Abstract

Nowadays, the uncertainty becomes more and more dramatic, which significantly negatively impacts on the development of companies. Especially the political risks like sanctions exactly hinder the further development of certain companies in the term of market shares worldwide and COVID-19 does destroy the manufacturing and the life of workers indicating that in many countries and for numerous companies the revenues and benefits gain substantial loss. However, the innovation could overcome this difficulty. It enhances the flexibility and agility as well as increases the competitiveness of companies to ensure problems encountered could be alleviated or even solved. For instance, Huawei, as an ICT company focusing on the innovation, successfully defeats the uncertainty and gains acceptable achievements through the innovation of ideas, technology, organizational structures and business models. Hence, it is apparent that the innovation positively influences on the firm performance. In other words, for corporations, the innovation is a wise choice to overcome multiple problems.