Lessons from Germany's 'Hidden Champions'

In a commentary, SMU Academic Director (MSc in Innovation) and Professor of Organisational Behaviour and Human Resources (Education) Thomas Menkhoff said he led 28 SMU students on a study trip to Germany recently to expose Singapore youths to the business logic of Germany's 'Mittelstand firms'. These are world class export-oriented small and medium-sized enterprises. Over 1,300 of these Mittelstand firms are regarded as 'Hidden Champions', they are mostly family-run, private companies which are among the top three in the global market with revenues below Euro 3 billion. The SMU team saw the importance of science-driven, innovative entrepreneurship at Heraeus Holding GmbH, took a closer look at the strategic business and innovation management systems of Dürr AG and the Mann+Hummel Group, and gained deeper insights into the 'dual' training and higher education approach at Mercedes-Benz Training Centre in Esslingen-Brühl. Closeness to customers was a common pattern in all firms the SMU team visited. Not only do the firms go the extra mile to reach out to customers in order to be of value and to further enhance their business models, they also increasingly support the establishment of networked innovation hubs such as the new German Tech Entrepreneurship Centre (GTEC) at the European School of Management & Technology in Berlin