Abstract

Poland is a country with a strong entrepreneurial spirit. The hidden champions’ performance has been closely related to political and economic changes: the fall of communism in 1989 and the transition from a centrally planned economy to a market economy. This led to the emergence of small private businesses focused on the domestic market. The accession to the European Union in 2004 created new perspectives for the hidden champions’ growth after the opening of the international markets, financial, educational, and institutional support, legal regulations, and FDI inflow with new technologies. Liberal democracy enabled the hidden champions to emerge in almost all industries. The majority of them have been taken over by large international companies. This has enabled their high performance. In the Global Competitiveness Index, Poland moved from 57th position in 2011 to 37th in 2018. Polish hidden champions build their positions using strong partnerships with suppliers and customers. Their competitive position is weaker than that of leading Western companies due to Poland’s less developed business culture and the complexity of regulations increasing the transaction costs and business risks. Hidden champions go international with their products and services and are masters in securing their access to scarce resources. They offer strongly innovative products based on their own R&D and develop their brands and new distribution channels, such as e-commerce and digital marketing. Poland is one of the world’s leaders in the business services sector and provides a friendly environment to start-ups.

Authors (4)