Corporate responsibility and place leadership in rural digitalization: the case of Hidden Champions

Abstract

ABSTRACT We examine the role of Hidden Champions in rural areas in advancing regional digitalization through corporate local and regional responsibility and place leadership. Endowed with abundant internal resources and high innovative capacity, these global niche market leaders face regional resource constraints, concerning digital infrastructure and workforce with digital capabilities. 57 semi-structured interviews with firm representatives and regional actors in rural Germany are analyzed. We show that these enterprises strategically use measures of corporate local and regional responsibility and exert place leadership to develop digitalization-related assets in their rural regions. These initiatives are operated through modes of both inclusive and exclusive agency and benefit. We find that the motives for these actions are grounded in a perceived lack of swiftness and capacity of public actors, but also entail emotional attachment to the region, particularly for family businesses. Our findings have implications for regional policymakers, such as targeting greater alignment of regional and corporate development goals.