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

Abstract

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

Frugal Engineering of Advanced Frugal Innovations for Global Sustainability Entrepreneurship

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