THE PECULIARITIES OF ITALIAN FAMILY BUSINESS ON THE EXAMPLE OF A “HIDDEN CHAMPION” –EURORICAMBI COMPANY
Original publication by Gregory Baev on Center for Production Management Website
In the publication “INVISIBLE LEADERS” («Vedomosti – Financial Times and The Wall Street Journal», 05.12.2006, No. 229 (1756)) Andrew Kuzmichov wrote about the book “Hidden Champions”, written by German researcher Hermann Simon. Simon has spent over 20 years studying the activities of small and medium-sized world-class companies. At the core of such firms, according to the Professor, is strong leadership, “which sets ambitious goals, which in turn define and drive internal competence of the firm”. Into the inner circle he placed “carefully selected and motivated staff, continuous innovation in product and service, as well as relying on the company’s own resources.” In the outer circle, according to the author, is “narrow market focus (relating to product/technology/application), proximity to the client, a distinct competitive advantage” and global orientation. Another feature of such companies is their average age (65 years). The oldest firm champion has been founded in 1753, and 7.6% of “hidden champions” are over 150 years old. Many of these firms have a global market share of 70-90% – items can be reached only by large multinational firms. Remarkably, 76.5% of the firms identified by Simon, are «family enterprises». Our expert and partner Dmitry Danshov, “Mehanika” Company Group’s General Director introduced us to Riccardo Vaccari, Are Sales Manager of Italian “hidden champion”, family-owned company Euroricambi, engaged in the development and production of components and spare parts for transmissions, gearboxes, axles, differentials. Interviewing Dmitry Danshov and Riccardo Vaccari, we tried to find out how the “hidden champion” concept, according to Simon, corresponds to a real Italian company.