The phenomenon of the Hidden Champions An examination of factors enabling SMEs to thrive in a globalized world

Abstract

Notwithstanding their anonymousness for the broader public and their relatively small size, the Hidden Champions are SMEs dominating their respective markets on a continent-wide or even worldwide level. When considering the fast pace of globalization and the competitive advantage of large companies it is astonishing how nameless SMEs can gain worldwide market leadership in a small but highly profitable market segment for a long period of time. Therefore, this academic work confronts identified success factors of Hidden Champions in literature with a selected case study of a German Hidden Champion operating in the safety automation market. The study aims at the one hand to elaborate empirically the market selection process of the Hidden Champions and on the other hand to examine the company intern determinants of those successful SMEs. Results show that the determinants identified in literature are mutually dependent and therefore it is their synergy which makes the selected company successful. Furthermore, findings suggest the categorization of analyzed factors in primary and secondary success factors.