What makes a gazelle after all?

Abstract

THE AIM OF THE STUDY

In recent years, several studies have been published that draw attention to the methodological problems related to the identification of high-growth firms (so called gazelles). These studies also pointed out the unanimous controversial nature of the research results. In our study, we provide a comprehensive summary of these methodological dilemmas. In addition, we summarize the most important results of the Central and Eastern European and Hungarian gazelle literature.

APPLIED METHODOLOGY

Literature survey, correlation analysis

MOST IMPORTANT RESULTS

After more than three decades of research the exact definition of gazelle firms is still lacking. Empirical studies report opposing results about the effect of demographic and firm level strategic variables on growth. Most times younger and smaller firms grow faster but there are many older and larger gazelle exist. Gazelles are not necessary operate in high tech industries; many of them are not innovative or export oriented. Well managed and networked businesses are becoming gazelles more frequently, proper financing is a major obstacle of growing ventures, but only a small fraction of gazelles are financed by venture capital. Central and Eastern European studies report similar contradictory results. To illustrate the methodological problems, using a Hungarian SME database (2010-2015), we tested different gazelle definitions often used by the literature. The connections between growth and different growth factors are presented in a correlation table.

FURTHER RESEARCH SUGGESTION

Similar to innovation, there is a need to standardize gazelle research, in particular the different growth measures. There is also a need to develop a complex model of growth . Besides the usual registry based empirical studies there is a need to develop questionnaires that are able to identify the key strategic factors of growth.