A study of the factors influencing the operating location decisions of small firms

Abstract

Investigates the purchase of industrial real estate by small to medium enterprises. Using a three-stage methodology, examined the views of a stakeholder panel, then drew a sample of 450 firms ranging from micro-businesses to large firms and examined the importance of various factors likely to influence the attractiveness of an industrial site. A focus group comprising members of an expert panel was then convened to discuss the findings. Highlights the subjective decision-making associated with the smaller firms in comparison with the``buying centre'' objectivity of the larger firms. Owner-managers from micro and small firms were motivated by such personal issues as the proximity of the industrial site to their home, rather than access to transport routes or freight terminals. The findings suggest that government and private sector agencies seeking to develop and market industrial land need to devote more time to understanding the needs of small firms. Also discusses implications for future research.

An Examination of Business Occupier Relocation Decision Making: Distinguishing Small and Large Firm Behaviour

“…There are similarities between the 18 strands identified above and those factors reported by Mazzarol and Choo (2003) as being the main reasons why firms, ranging from large multi-national corporations to small proprietor owned and run businesses, considered relocating. However, the empirical approach they adopted to analyse the interview material, generated rather constrained findings that offered little contemplation or insight into the reasoning behind the decisions made.…”

“…One exception is work by Mazzarol and Choo (2003), based on face-to-face interviews with firms involved in industrial and commercial property sales and land developments, the convening of 11 stakeholder and expert panels, and a telephone survey of firms of varying size. They contemplated not only patterns of organisational 'buying behaviour' across a range of organisations, but also studied a 'buying process' that involved a group of people forming an informal, cross departmental decision unit that they termed a 'buying centre'.…”

Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand

“…In many cases, dealing with legal aspects has forced the SMEs to allocate significant amount of financial resources due to bribery practices. Legal aspect is often also used in selection operating decision in order to ensure future business success (Mazzarol & Choo, 2003).…”

Location, Industry Competition and Profitability

“…The construction of one or more industrial unit in optimum sites and in the best possible situation, not only improves materials circulation and customer services, but also puts the plant in a desirable situation. Decisions associated with the selection and learning features of a center's location can have a great impact on the ability to gain and maintain competitive advantages (Mazzarol and Choo, 2003). However, existing theories (Weber's model and Hotelling's model), have considered distance from population centers to reduce company's profitability, and industry competition is expected to increase this impact (Losch's model).…”