A Critical Review of Hidden Champions and Emerging Research Findings on Their International Strategies and Orientations

Witt, Alessa; Carr, C.

doi:10.1057/9781137277503.0014

Cited by 5 publications

(4 citation statements)

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“…According to Witt, no hidden champion within her sample, follows the Uppsala model, while 43% can be characterised as Born Globals and are already active worldwide shortly after their foundation. All of the Born-Global hidden champions prefer direct export as mode of market entry (Witt and Carr 2013). Relying on their own assets grants them to retain high degree of control, which is essential to protect their technological advantage and the high quality of their products.…”

Section: Internationalization Strategies Of Hidden Championsmentioning

confidence: 99%

Hidden champions: a review of the literature & future research avenues

Schenkenhofer

2022

Manag Rev Q

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Substantial efforts have contributed to overcome the scarcity of research on hidden champions. Nevertheless, literature has yet missed to compile a comprehensive review. Drawing on the insights of 112 publications, four strands of literature could be distinguished to unravel the essence of hidden champions. Research on hidden champions studies their (1) internationalization strategies, (2) R&D and innovation strategies, the (3) worldwide and regional geographic distribution of hidden champions and finally (4) other research that could not be assigned to one of the first three strands. A hand-collected sample of 1372 German hidden champions exemplifies the key insights from the reviewed research articles. Discussing the findings of the different literature strands aims at drawing a conclusion on their main results and analytical pitfalls to eventually unfold and motivate future research avenues.

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Section: Internationalization Strategies Of Hidden Championsmentioning

confidence: 99%

Hidden champions: a review of the literature & future research avenues

Schenkenhofer

2022

Manag Rev Q

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“…Relying on own assets, in the form of either own-created, co-created or acquired production capacity abroad, allows them to retain a high degree of control. Interestingly, such control also helps the INMLs in safeguarding their technological advantage and product quality (Witt, 2010; Witt and Carr, 2013 – H1 ) and in managing direct customer relationships (Simon, 2012 – H3 ).…”

Section: Discussionmentioning

confidence: 99%

“…Alternatively, they can opt for intermediate (network/cooperative) solutions, like licensing/franchising. In this regard, publications by Simon (2009), Witt (2010) and Witt and Carr (2013) state that hidden champions have a predilection for opening their own branch locations and factories abroad, which they tend to run internally (without relying on third parties). Audretsch et al (2018) add that owning foreign branch locations facilitates close relationships with customers abroad.…”

Section: 3mentioning

confidence: 99%

Leveraging (in)formal early-mover and diligent-follower advantage mechanisms to attain international niche market leadership: insights from Basque “hidden champions”

Kamp

Apodaca

2023

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Purpose This paper aims to study whether international niche market leaders (INMLs) gained their leading position as early mover or diligent follower, and assess whether they leveraged hard or soft forms of technological, supply pre-emption and customer lock-in advantage mechanisms. Design/methodology/approach Empirical material stems from qualitative and quantitative data on a sample of 20 niche companies from the Basque Country (Spain) that operate in business to business markets. Findings The sample predominantly followed an early entrant strategy and applied soft measures to reach niche market leadership. Research limitations/implications Findings imply that early entering fosters conquering leadership in niche markets, that pioneer advantage is easier to sustain in niches than in mainstream markets, and that soft measures are more effective in niche markets than in larger markets. A limitation to our findings is that they follow from explorative research on a sample of firms from a reduced geographic setting. Practical implications Hidden champions and INMLs can be important sources of technological progress and economic value for the localities that host them. Therefore, despite their traditional low profile and the fact that they are not always the largest firms around, policymakers may want to pay more attention to this type of companies. Originality/value Tot he best of the authors’ knowledge, this is the first paper to research entry timing and its outcome for market leadership with regard to niche players or hidden champions-type of firms. It introduces an original taxonomy to operationalize and distinguish between hard and soft measures to leverage advantage mechanisms related to market entry timing.

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“…Research frequently does not distinguish between HCs and other SMEs (Schenkenhofer 2020). This article provides a perspective on a segment of SMEs that systematically deviates from other SMEs due to market and technology leadership and abundant internal resources, and different managerial context (Witt and Carr 2013). Further, in academic and political discourses and beyond, digitalization has suffered from a lack of analytical precision (Bloomberg 2018).…”

Section: Introductionmentioning

confidence: 99%

Digital pioneers in the periphery? Toward a typology of rural Hidden Champions in times of digitalization

Rietmann

2021

Journal of Small Business & Entrepreneurship

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We unravel dimensions, conditions, and outcomes of digitalization for Hidden Champions (HCs) in rural areas in Germany. As highly innovative small-and medium-sized market leaders, HCs are challenged to maintain their niche dominance but are endowed with significant resources. However, firms in rural areas face resource constraints related to digitalization and innovation. Based on qualitative interviews with 28 companies, we develop a typology of HCs with four firm types differing in their handling of digitalization: Digital HCs, HCs of Digitalization, Traditional HCs, and Digitalization-Skeptical HCs. Their digitalization-related potential and risk assessment, resource availability, strategy, and innovation types are portrayed. We provide evidence that innovative market leaders in rural areas are not necessarily also digitalization frontrunners. We contribute to a deeper understanding of the nexus of digitalization, SMEs, and rural areas. Our findings have managerial and policy implications. Less innovative SME can emulate HCs' handling of digitalization. Regional policymakers should expand firm type-specific digitalization policy formulation. RÉSUMÉNous r ev elons les dimensions, les conditions et les r esultats de la num erisation pour les champions cach es (CC) dans les zones rurales en Allemagne. En tant que leaders de march e de petite et moyenne taille hautement innovateurs, les CC doivent relever le d efi de maintenir leur domination de niche mais sont dot es de ressources importantes. Cependant, les entreprises des zones rurales sont confront ees a des contraintes de ressources li ees a la num erisation et a l'innovation. Sur la base d'entretiens qualitatifs avec 28 entreprises, nous d eveloppons une typologie des CC a partir de quatre types d'entreprises qui diff erent dans leur traitement de la num erisation: les champions cach es du num erique, les champions cach es de la num erisation, les champions cach es traditionnels et les champions cach es sceptiques de la num erisation. Leur potentiel et l' evaluation de leurs risques, li es a la num erisation, la disponibilit e des ressources, la strat egie et les types d'innovation sont d ecrits. Nous apportons la preuve que les leaders du march e dans les zones rurales ne sont pas n ecessairement aussi des pr ecurseurs de la num erisation. Nous contribuons a une ARTICLE HISTORY

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A Critical Review of Hidden Champions and Emerging Research Findings on Their International Strategies and Orientations

Cited by 5 publications

References 0 publications

Hidden champions: a review of the literature & future research avenues

Hidden champions: a review of the literature & future research avenues

Leveraging (in)formal early-mover and diligent-follower advantage mechanisms to attain international niche market leadership: insights from Basque “hidden champions”

Digital pioneers in the periphery? Toward a typology of rural Hidden Champions in times of digitalization

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