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Determinants of hidden champions: Evidence from Germany

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  • Schlepphorst, Susanne
  • Schlömer-Laufen, Nadine
  • Holz, Michael

Abstract

Our explorative study analyses the factors that affect the likelihood of German companies to be a hidden champion. Based on an econometric estimation model with quantitative data from 60 hidden champions and 346 non-hidden champions, we could confirm prior research findings that specific enterprise characteristics such as research and development, international business activities and the great ambition to maximise market shares have significant positive effects on the likelihood to belong to the group of hidden champions. Companies of the service and distribution industries have lower chances to be a hidden champion compared to manufacturing enterprises. Drawing on the empirical finding that hidden champions do not place great value on the use of public promotional funds, governments are advised to apply other support measures in order to foster the development of hidden champions. The startingpoint should be the improvement of framework conditions.

Suggested Citation

  • Schlepphorst, Susanne & Schlömer-Laufen, Nadine & Holz, Michael, 2016. "Determinants of hidden champions: Evidence from Germany," Working Papers 03/16, Institut für Mittelstandsforschung (IfM) Bonn.
    • Handle: RePEc:zbw:ifmwps:0316
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    References listed on IDEAS

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    1. Logue, Danielle M. & Jarvis, Walter P. & Clegg, Stewart & Hermens, Antoine, 2015. "Translating models of organization: Can the Mittelstand move from Bavaria to Geelong?," Journal of Management & Organization, Cambridge University Press, vol. 21(1), pages 17-36, January.
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    3. Venohr, Bernd & Meyer, Klaus E., 2007. "The German miracle keeps running: How Germany's hidden champions stay ahead in the global economy," Working Papers 30, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    4. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
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    6. Hermann Simon, 2009. "Hidden Champions of the Twenty-First Century," Springer Books, Springer, number 978-0-387-98147-5, September.
    7. Voudouris, Irini & Lioukas, Spyros & Makridakis, Spyros & Spanos, Yiannis, 2000. "Greek hidden champions:: lessons from small, little-known firms in Greece," European Management Journal, Elsevier, vol. 18(6), pages 663-674, December.
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    Cited by:

    1. Rammer, Christian & Spielkamp, Alfred, 2019. "The distinct features of hidden champions in Germany: A dynamic capabilities view," ZEW Discussion Papers 19-012, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    hidden champions; internationalisation; Germany;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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