Title: How emerging market firms can upgrade and develop into hidden champions: evidence from China

Authors: Jingqin Su; Yibo Jia; Miao Cui; Xueke Du; Shuai Zhang

Addresses: School of Management and Economics, Dalian University of Technology, Dalian 116024, Liaoning, China ' School of Management and Economics, Dalian University of Technology, Dalian 116024, Liaoning, China ' School of Management and Economics, Dalian University of Technology, Dalian 116024, Liaoning, China ' School of Management and Economics, Dalian University of Technology, Dalian 116024, Liaoning, China ' School of Management and Economics, Dalian University of Technology, Dalian 116024, Liaoning, China

Abstract: This paper investigates how Emerging Market Firms (EMFs) upgrade and develop into hidden champions in a context that differs from that of developed countries. With the perspective of Global Value Chains (GVCs) theory, case studies of three Chinese hidden champions in different industries were conducted. The findings show that with the help of global lead firms, embedded depth and niche market breadth are key strategies for the EMFs to improve product competitiveness, technical capacities, global market share and bargaining power, and ultimately shape the development process and outcomes of hidden champions. Our results also suggest that both strategies are closely related to the distinctive characteristics and the subjective intention to improve performance of EMFs. This research is useful for both academics and practitioners and contributes to the theory of hidden champions by providing the GVCs perspective. Furthermore, corresponding practical insights are offered to help more companies to gain competitive advantages in the cooperation with global lead firms.

Keywords: emerging market firms; hidden champions; global value chains; global lead firms; case study; upgrading.

DOI: 10.1504/EJIM.2024.141635

European Journal of International Management, 2024 Vol.24 No.3/4, pp.672 - 699

Received: 16 Apr 2019
Accepted: 03 Apr 2020
Published online: 30 Sep 2024 *

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