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The chapter is structured as follows: in the first part, we provide the framework for the analysis of the formation of the born global firm, whereas the entrepreneurial, strategic, and network-based factors are conceptually linked and leading toward a global champion. The analytical model proposes the analysis of strategic choices as defining factors at the level of entrepreneurial behavior, firm strategy, and network. The case study methodology is provided in the second part of the chapter. The third part provides the empirical linkages of entrepreneurial, strategy based, and network factors’ manifestations and underpinnings in R&D intensive entrepreneurial born global firms. These are followed by discussion and conclusions enclosing empirically grounded framework that explains the emergence of R&D intensive entrepreneurial-hidden champions from the perspective of entrepreneurial firm and network theories.

This study explores whether machinery firms with a ‘hidden champions’ profile leverage Industry 4.0 practices to roll out smart services; whether this allows them to get a firm grip on their installed base; and whether it allows them to expand their international (service) business. The research is conducted based on exploratory, multiple-case study methods.

The author finds that the implementation of smart services can improve a machine tool builder’s hold on its installed base and expand the scope of its international (service) business. However, the study also finds that the ability to capitalise on this potential depends on a series of moderating variables. The study also concludes that there is a risk that smart services do not unlock a strong willingness-to-pay among potential customers.

It, therefore, calls into question several conventional wisdoms, such as the possibilities that Industry 4.0 offers for suppliers operating in business-to-business markets, and the receptiveness to smart services by buyers in such markets. Finally, it highlights the specific liabilities faced by hidden champions with regard to expanding their smart services business.

The chapter provides practical insights into the hurdles that industrial suppliers must overcome in their attempts to achieve uptake of smart services by customers, particularly within a cross-border context.

In the German economy, in addition to typical small- and medium-sized enterprises (SMEs), the Mittelstand plays a major role. The present chapter focuses on those Mittelstand firms that are known as Hidden Champions. The contribution will show how the general characteristics of Mittelstand firms impact their internationalisation strategies and internationalisation processes. It outlines how the German Mittelstand solves the global–local dilemma in an unparalleled way, and it stresses some of the major challenges that Mittelstand firms face.

The chapter provides an integrated analytical account of the contributions of the volume. Next to the results from a comprehensive literature review on gazelle growth factors, two further content blocks of the volume are summarized, one on gazelles in Germany and one on specific under-researched topics, that is, gazelles’ internationalization and gazelles’ corporate citizenship. The chapter highlights main findings and avenues for further research, including a short discussion on the use of the term “gazelle”.

This chapter elaborates on the usefulness of embracing complexity theory, modeling outcomes rather than directionality, and modeling complex rather than simple outcomes in strategic management. Complexity theory includes the tenet that most antecedent conditions are neither sufficient nor necessary for the occurrence of a specific outcome. Identifying a firm by individual antecedents (i.e., noninnovative vs. highly innovative, small vs. large size in sales or number of employees, or serving local vs. international markets) provides shallow information in modeling specific outcomes (e.g., high sales growth or high profitability) – even if directional analyses (e.g., regression analysis, including structural equation modeling) indicate that the independent (main) effects of the individual antecedents relate to outcomes directionally – because firm (case) anomalies almost always occur to main effects. Examples: a number of highly innovative firms have low sales while others have high sales and a number of noninnovative firms have low sales while others have high sales. Breaking-away from the current dominant logic of directionality testing – null hypothesis significance testing (NHST) – to embrace somewhat precise outcome testing (SPOT) is necessary for extracting highly useful information about the causes of anomalies – associations opposite to expected and “statistically significant” main effects. The study of anomalies extends to identifying the occurrences of four-corner strategy outcomes: firms doing well in favorable circumstances, firms doing badly in favorable circumstances, firms doing well in unfavorable circumstances, and firms doing badly in unfavorable circumstances. Models of four-corner strategy outcomes advance strategic management beyond the current dominant logic of directional modeling of single outcomes.

The chapter looks at two recent acquisitions by Chinese companies of German firms operating in the automotive sector. In both cases it was the target firm that initiated the process, intentionally selling to a Chinese strategic investor. The main purpose of the chapter is to examine the main motivations that induce developed country MNEs to deliberately search for a buyer in China.

The chapter uses a case-study approach. Interviews were conducted with the managers that followed the entire process of sale and who were responsible for the search and the selection of a strategic investor in China.

Empirical findings show that major drivers in opting for Chinese investors are the potential synergies generating from resource redeployment, the ability of the acquired firm to maintain its autonomy and the opportunity to expand into the Chinese market.

The cases analysed show that developed country firms may take a proactive role in China in order to address their institutional-based disadvantages and to reduce and eliminate the liability of foreignness they may confront there. What is important is strong core competitiveness on their side, which can ensure their operational autonomy, such as technological leadership and superior quality and solid development. The policy implications are relevant, because in the current particular situation where many companies in Europe turn for sources of capital to emerging market firms, Chinese investors can facilitate target companies’ growth, with a positive impact for the local economy.

The enterprise risk management (ERM) approach promises to manage corporate risks holistically, as opposed to the silo perspective in traditional risk management frameworks. There is evidence that different economic and regulatory environments profoundly shape the implementation of ERM in different countries. To understand better the specific situation in Germany, this chapter presents an analysis on the current application, the regulatory environment, and the development over time of ERM in Germany. Finally, we highlight some important avenues for further research on ERM in Germany and beyond.