A Context-Choice Model of Niche Entrepreneurship

Audretsch, David B.; Lehmann, Erik E.; Schenkenhofer, Julian

doi:10.1177/1042258720936042

Cited by 23 publications

(33 citation statements)

References 95 publications

(141 reference statements)

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“…To increase sales and achieve scale economies, HCs expand internationally (e.g., Audretsch et al, 2020;Rammer & Spielkamp, 2015). Although the HC phenomenon has received much interest in practice, academic research on the topic is scarce.…”

Section: Introductionmentioning

confidence: 99%

“…HCs employ a highly skilled workforce, which they constantly educate and train (Lehmann et al, 2019;Voudouris et al, 2000). HCs are effective (incremental) innovators and often also technology leaders (Audretsch et al, 2020;Rammer & Spielkamp, 2015;Voudouris et al, 2000). However, while we already have an understanding of the characteristics of HCs and of their strategies, we know little about their economic performance.…”

Section: Introductionmentioning

confidence: 99%

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Financial performance of hidden champions: Evidence from German manufacturing firms

2021

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Hidden champions are market leaders in niche markets and are an important part of the German Mittelstand. Although the hidden champion phenomenon has received considerable interest in practice, few academic studies on this issue exist. We especially lack evidence on the financial performance of hidden champions. Our study addresses this gap and investigates the profitability of hidden champions. In analyzing a panel dataset of 4677 German manufacturing firms, of which 617 are hidden champions, we find that hidden champions have significantly higher profitability with regard to return on assets but less so regarding return on equity. The hidden champion performance effect on return on assets is valued at 1.7 percentage points. Furthermore, the hidden champion performance effect decreases with firm size. Our paper contributes to the literature on the effect of firm strategy on firm profitability and adds to a better understanding of the hidden champion phenomenon.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Financial performance of hidden champions: Evidence from German manufacturing firms

2021

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“…Strategic Assumptions Surfacing and Testing -SAST (Mason and Mitroff, 1981); Soft Systems Methodology -SSM (Checkland, 1996); and Interactive Planning -IP (Ackof, 1981), etc.…”

Section: Discussionmentioning

confidence: 99%

“…Every individual in society must be aware that as a socially (ir)responsible customer, he or she can influence the development and operation of the organisation (Dean and Suhartanto, 2019;Pahlevi and Suhartanto, 2020). New consumer habits open market niches (window of opportunity) for new providers or new offers (Audretsch et al, 2020;Mastromartino et al, 2020). However, when there is more competition in the market (Latan et al, 2018), organisations are more concerned with accountability to society/social responsibility.…”

Section: System Model's Support To Social Responsibilitymentioning

confidence: 99%

The viable system model’s support to social responsibility

Štrukelj

Zlatanović

Nikolić

et al. 2021

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Purpose The consequences of human social irresponsibility urge socially responsible reactions. The authors expose the consequences of socially irresponsible behaviour and state possible requisitely holistic tools to eliminate organisations’ dangerous and socially irresponsible behaviour. This paper aims to examine how the viable system model (the VSM) used as a diagnostic tool can help organisations support socially responsible behaviour. Design/methodology/approach Given the variety of systems methodologies, the authors selected the VSM as a key methodological tool of Organizational Cybernetics. A case-study approach is used to demonstrate the power of the VSM as a diagnostic tool. Findings Humans need to replace recklessness and selfishness by faster re-orientation towards a socially responsible society. By following the cybernetic circle of the preparation and implementation of the management process and practising social responsibility via the VSM, organisations can conduct socially responsible business operations for a socially responsible society. Respecting the pluralist nature of social responsibility and a limited framework of the VSM, the VSM analysis needs to be supported by interpretive systems approaches, such as Strategic Assumptions Surfacing and Testing (SAST). Research limitations/implications The presented study’s limitation is the case study of a selected organisation from Europe. The discussion could be relevant to each organisation, which is observed as a viable system. The insights gained with this case study can be broadened by empirical research involving diverse organisations from various countries. Practical implications Research results indicate socially irresponsible behaviours of the researched organisation and possible ways of overcoming them. The cybernetic circle of the preparation and implementation of socially responsible management processes through the VSM offers a possible path towards more social responsibility in organisations. Moreover, the VSM should be used in combination with interpretive systems approaches, such as SAST. Social implications The generality of the VSM indicates that decision-makers could use the VSM for diagnosing socially irresponsible behaviour in organisations and for redesigning organisations to help develop a more socially responsible society. Originality/value The paper contributes to a cybernetic framework and methodological support to social responsibility. This study could serve as an essential starting point for organisations wishing to take further steps towards social responsibility.

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“…1 For further research on Hidden Champions, see also Audretsch et al (2018). Voudouris et al (2000) and Lee et al (2014) on Greece and Korea.…”

Section: Introductionmentioning

confidence: 99%

Subsidiarity as secret of success: “Hidden Champion” SMEs and subsidiarity as winning HRM configuration in interdisciplinary case studies

Mear

Werner

2020

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PurposeThis paper contributes to the theory of the relationship between human resource management (HRM) and innovation at small- to medium-sized enterprises (SMEs) by conducting a conceptual analysis of the question why Germany boasts by far the highest number of “Hidden Champion” SMEs. This is done by case studies from the army and public financial management of aid disbursal in developing countries. Implications for HRM at SMEs are discussed.Design/methodology/approachConceptual analysis using case studies.FindingsContributing towards filling the gap concerning theoretical underpinnings of the link between HRM and innovation, we suggest that interdisciplinary work from relevant organisational case studies indicates that the concept of institutional design to provide motivational incentives may be relevant, especially concerning high performance systems with bundles of HRM practices. Specifically, the fundamental principle of subsidiarity is found to be important.Research limitations/implicationsThe research is broadly applicable to organisations of all kinds, as the diverse case studies indicate. We point towards tentative implications for the firms that account for the majority of the work force, namely SMEs, and among them the most successful ones, the so-called “Hidden Champions”.Practical implicationsHR managers can improve motivation, performance and innovation by decentralising decision-making as far as possible, while ensuring the overall organisational goals are well understood and shared, and resources are dedicated to train and educate staff. Additionally, the conception of rank-order competitions complements the institutional design.Social implicationsGreater productivity and material performance as well as greater job satisfaction via larger autonomy and decision-making power on the local level can be achieved by the application of subsidiarity as key HRM configuration. This can be employed at SMEs, as discussed, but also other organisations. Further, the principle of subsidiarity and the greater emphasis on staff training and education may help reduce inequality.Originality/valueOur paper contributes towards filling the gap in the literature on the link between HRM and innovation, by identifying the role of subsidiarity. We introduce an interdisciplinary perspective, with contributions from economics and psychology, among others. We also contribute to the history of HRM.

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A Context-Choice Model of Niche Entrepreneurship

Cited by 23 publications

References 95 publications

Financial performance of hidden champions: Evidence from German manufacturing firms

Financial performance of hidden champions: Evidence from German manufacturing firms

The viable system model’s support to social responsibility

Subsidiarity as secret of success: “Hidden Champion” SMEs and subsidiarity as winning HRM configuration in interdisciplinary case studies

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