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The International Operations of China’s Hidden Champions—Based on Fuzzy-Set Qualitative Comparative Analysis

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  • Tian Zhao
  • Rui Ma
  • Shuai Chen

Abstract

Hidden champions are SMEs with strong global competitiveness in specialized fields but low profile. China’s hidden champions show less internationalization compared to their global peers, despite niche market dominance. Consequently, an exploration of the internationalization trajectories and determinants for China’s hidden champions is essential. This study utilizes fsQCA to investigate the internationalization strategies of 91 hidden champions, from China, using the “Efficiency-Structure-Environment†analytical framework. Five principal causal pathways for international operations are illustrated, categorized into three main driving models: “Efficiency-Environment,†“Efficiency-Structure,†and “System Interaction,†with the first model being the most dominant. The study further classifies hidden champions by ownership, finding that both state-owned and private enterprises predominantly follow the “Efficiency-Structure†driving model. Additionally, when classified by certification types, all categories are found to align with the “System Integration†model. Notably, the international path for cultivation hidden champions is also well-explained by the “Efficiency Dominance†model. Lastly, the study delineates industry-specific models: general equipment manufacturers employ the “Efficiency-Structure†model, special equipment manufacturers use the “Structure-Environment†model, and the computer industry follows the “System Integration†model.

Suggested Citation

  • Tian Zhao & Rui Ma & Shuai Chen, 2024. "The International Operations of China’s Hidden Champions—Based on Fuzzy-Set Qualitative Comparative Analysis," SAGE Open, , vol. 14(3), pages 21582440241, August.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:3:p:21582440241271071
    DOI: 10.1177/21582440241271071
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