The relative merits, strengths and weaknesses of large versus small businesses have been debated, without conclusion, for years. The capitalist economy is built on the principles of constant growth and increasing returns to shareholders. This, combined with the logic of economies of scale, means most industries tend towards consolidation, with a few giants at one end and small, innovative start-ups at the other.

As London Business School professor Julian Birkinshaw puts it, the key to success is to find the right management model for your organisation and industry. Small may be beautiful sometimes, but when the conditions are right, big can be even more beautiful. Where it tends to get ugly is when the two cultures come together.

This happens most often when a large—often struggling—corporate firm buys a dynamic independent in the hope of tapping into the small firm’s innovative magic. At the time such deals are announced, there are usually noises made about how the large firm will help the small firm organise its systems better. At which point, it’s usually time to read the last rites. Because the usual outcome of these deals is that the small, innovative firm is squeezed to death. By imposing all those back-office systems—often accompanied by a large dollop of command and control culture—the chaotic spark that makes small firms tick is extinguished.

So the next chapter of the Saab story will be particularly intriguing. This Swedish, niche car brand was recently acquired from General Motors by the even more specialist (and much smaller) firm Spyker, a Dutch company known for producing tiny quantities of very good, very expensive supercars. It’s true that GM never seemed to have a clear idea of what to do with the too-exotic-for-comfort Saab. So it’s possible that whatever Spyker does, it can’t do any worse.

There is even a sense of common heritage, with both brands rooted in a tradition of jet aeroplanes. Even in what was a very bad year last year, Saab sold almost 40,000 cars. For Spyker, a company that’s used to selling a handful of hand-built cars, that’s a huge step-change.

But what makes the deal so fascinating is that it’s so rare for small, innovative start-ups to get to play with bigger boys’ toys. Announcing the deal, Spyker’s chief executive Victor Muller spoke about imposing “an entrepreneurial leadership style, sensitive to the uniqueness, heritage and individuality” of the brand. 

Saab has at least one interesting new car out this year. Whether that can inspire confidence in a depressed market concerned with residual values, warranties and future servicing remains to be seen. But with their striking designs and superb performance, there is still every chance that a few years down the line, Spyker Saab Automobile will deliver some genuinely exciting cars to the niche end of the mass market.

Richard Cree

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