Danica Purg ¹, Olga Saginova ², Irina Skorobogatykh ³, Zhanna Musatova ³

Affiliations
1 CEEMAN is International Association for Management Development in Dynamic Societies, RU
2 Department of Entrepreneurship and Logistics, Plekhanov Russian University of Economics, Moscow, Russian Federation
3 Department of Marketing, Plekhanov Russian University of Economics, Moscow, Russian Federation

Abstract

Background/Objectives: This study attempts on the family owned Russian companies which were identified as Hidden champions according to Simon's methodology. Research defines key success factors of these companies: marketing strategies, internationalization, leadership styles, entrepreneurship approaches and customer value creation patterns. Methods/Statistical Analysis: Complex methodology of data collection was employed. Researchers used and adopt the Simon's questionnaire to obtain information about performance of 29 identified family-owned Russian companies as a Hidden Champions. Different aspects of the performance of these companies were studied. The variety of questions with 1-7 Likert scale closed were used. Researchers focused more on local causalities rather than following some universal laws to collect primary data about Russian family owned HC performance. Findings: The research reports that most of identified companies from the different sectors of business are successfully carving new marketing niches in their markets on the local, national or even global scene. Using resource-based theory the authors pay special attention to human and social capital, its innovativeness and the influence of early internationalization on companies' survival and growth. Family-owned Hidden Champions in Russia show-case HC key success factors, including innovative product portfolio regularly updated to maintain high technology leadership and customized to meet the specific requirements of key clients; early internationalization through expansion to foreign markets with bigger demand or better access to high price/low volume segments; building professional communities and networks to maintain and develop company's social capital. Improvements: Continuing research on HCs in Russia identified candidate companies outside the two metropolitan areas, in the Russian regions. Studies of successful and innovative family owned businesses can go beyond H. Simon's methodology of Hidden Champions and consider regional leaders in Russia of the niche markets.

Keywords

Dynamically Developing Markets, Early Internationalization, Family Owned Hidden Champions, Human Capital, Innovations, Key Success Factors, Market Niche, Social Capital

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