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

Abstract

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.

Hidden champions as a determinant of regional development: An analysis of german districts

“…Concerning our theoretical contribution, we add to the small and emerging stream of HC literature, as we examine the HC phenomenon on a regional level. Previous research on HCs has mainly focused on the internationalization (e. g. Audretsch et al 2018), R&D, and innovation (e. g. Rammer/Spielkamp 2015, 2019) strategies of HCs, as identified by Schenkenhofer (2020). A rather small strand of the literature analyzes HCs in a geographic context, examining, for instance, the worldwide distribution of HCs (e. g. Audretsch et al 2020;Lehmann et al 2019) or the role of HCs in small towns and peripheral regions (e. g. Lang et al 2019;.…”

“…To maintain a market-leading position, they manufacture technologically advanced products and position themselves as quality leaders. Consequently, HCs require profound expertise, which they have acquired mainly due to their qualified workforce and extensive innovation activities (e. g. Lehmann et al 2019;Rammer/Spielkamp 2015Schenkenhofer 2020). Third, niche firms stand out by applying specialization and differentiation, typically with reference to products and customers (e. g. Audretsch et al 2018Audretsch et al , 2020Dalgic/ Leeuw 1994;Kotler 1997).…”

“…As the third HC criterion of Simon (1996), low public awareness, is difficult to measure and subjective, we do not include it in our study. This shortcoming of HC research has already been pointed out by Schenkenhofer (2020) who sees the development of a measure of the hidden criterion as a major avenue for future HC research.…”

Editorial to the special issue “Structured Literature Reviews in Entrepreneurship Research-Taking Stock and Setting the Agenda”

“…However, a comprehensive review of the increasing Hidden Champions literature is missing. Schenkenhofer’s ( 2022 ) study “Hidden Champions: a review of the literature & future research avenues” closes this research gap by investigating 112 publications on Hidden Champions. Using a conceptual and theory-based review, the author derives the factors that explain the characteristics and behavior of Hidden Champions and identifies the main research streams.…”

Davids and Goliaths: Hidden Champions in an Age of State Capitalism

“…However, it would be interesting to dive into some of the underlying factors that contribute to the explanation of their success. A recent review identified the quality of human capital (particularly at the managerial level), innovation in form of patented proprietary technologies, and nimbleness (a combination of flat organization structure with relatively small size) as the most distinct resources controlled by hidden champions (Schenkenhofer, 2022). Technological developments also play a role; recent experimental research has shown additive manufacturing techniques, such as 3D printing, to significantly reduce the levels of output required to access the full extent of economies of scale (Baumers & Holweg, 2019).…”