Following the success of the 2011 conference on hidden champions (HCs) - highly innovative and specialized small to medium size companies holding lead market positions in their fields internationally – participants to the conference discussed main insights from the recently published book Hidden Champions in CEE and Turkey; updates and developments by the leaders of selected hidden champion companies; expert opinions on the trends and the potential of the CEE region.
In her opening address Prof. Danica Purg, President of CEEMAN and IEDC-Bled School of Management, who was initiator of the research on HCs in CEE and co-editor of the book Hidden Champions in CEE and Turkey, told how she was inspired by the outstanding export achievable in many midsized companies. Moreover, she noted the remarkable impact that CEE countries can create by building their economic future on HCs.
In his video address, Prof. Hermann Simon, author of the original methodology of HCs identification in German-speaking countries, shared his first-hand observation of the HC phenomenon increasing worldwide, its importance recently recognized and supported also in Asia. “As for CEE countries, I am convinced that HCs will play a key role in the future development of the region. Those countries will not have a chance to build their future in the global competition with Fortune 500 corporations, but must focus on strong mid-sized exporters, on HCs which are innovative and globally competitive” maintains Prof. Simon.
Potentials and strengths of Central and Eastern Europe - the “homeland” of HCs presented at the conference – was debated by Erhard Busek, Chairman of the Institute for the Danube Region and Central Europe, Rainer Münz, Head of the Research & Knowledge Center of Erste Group and by Arnold Schuh, Director of WU Competence Center for Central and Eastern Europe. Speakers maintained that most CEE economies are facing internationalization difficulties, being in a “sandwich position“ between efficiency & innovation, still suffering from negative country-of-origin effects and being late-comers to internationalization. Niche specialists, on the other hand, unburdened with the past, more agile and highly innovative, can indeed play a role of drivers for internationalization and higher competitiveness of CEE. (Presentations of Dr Münz and Dr Schuh, along with some other useful materials on the HC research in CEE, are available in “Materials” section at www.ceeman.org/hidden-champions).
The panel on the HC research, moderated by Ian Sutherland, Deputy Dean for Research and Director of PhD Studies at IEDC-Bled School of Management, Slovenia, offered an account on developments in HCs in Russia, Estonia and Slovakia since the 2011 report (presented by Olga Saginova, Head of Department of Comparative Economics and Entrepreneurship at Plekhanov Russian University of Economics; Rein Riisalu, Lecturer at Tallinn School of Economics and Business Administration of Tallinn University of Technology; and Tamara Bobakova, Senior Consultant at Simon-Kucher & Partners, Luxembourg, respectively). The researchers confirmed HCs sticking to further innovating, upgrading and adding new features to their existing products and services, or as a new trend, for example, entering into cooperation and co-branding activities. “Despite increasingly difficult economic environment, all HCs are still there and growing. Why? Because of their international focus and innovative character”, concluded Tamara Bobakova, researching HCs in Slovakia.
The hidden champions panel moderation was entrusted to a HC itself, Iztok Seljak, President of the Board of Hidria, Slovenia, who knowingly turned to representatives of selected HC companies: Eivind Schackt, Studio Moderna, Slovenia, Ana Majetić, DOK-ING, Croatia and to Dmitry Chernenko, STiM, Belarus. Asked about the positive differentiation of DOK-ING, Ana Majetić pointed out the uniqueness of the product, coupled with efficient technology and identifying potential demands in international markets. As for the key success factor of Studio Moderna, leading multi-channel direct marketing platform in Central and Eastern Europe, it resides in “creating best possible purchase convenience for potential customers, coupled with high quality and great service”, pointed out Eivind Schackt. The panel wrapped up on the belief that sustainable development will play an increasingly important, even essential role in the future development of genuinely successful companies.