The Evolution of Studies on Business Location Factors

Vlachou, Charisia; Iakovidou, Olga

doi:10.1142/s1084946715500235

Cited by 16 publications

(9 citation statements)

References 62 publications

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“…However, it seems impossible to create a universal set of the factors influencing the decision on an enterprise's location. Moreover, even a hundred factors might be taken into account in making a location decision, but only a few of them are really important (Vlachou & Iakovidou, 2015). The literature review shows that location factors can be grouped and divided in different ways.…”

Section: Sme Location Factors: Literature Reviewmentioning

confidence: 99%

Determinants of SME location in a suburban area: Evidence from the Gdańsk–Gdynia–Sopot Metropolitan Area

Martyniuk¹,

Gierusz²,

Pęczek³

2017

Urbani izziv

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Given the importance of small and medium enterprises (SMEs) in the European economy, it is essential to have adequate information about the various factors that determine their choice of location. However, the size of a company is often an aspect not covered in theoretical studies and empirical research on industrial locations and urban planning. This article examines the place of residence as a stimulator of SME development in suburbs. Multidisciplinary research carried out in the Gdańsk-Gdynia-Sopot Metropolitan Area, known as the Tricity, confirms this trend. The location determinants of SMEs in suburban areas were identified using a questionnaire. The survey was conducted in 251 enterprises located in seven municipalities with the highest suburbanisation rates within the Tricity. The study confirms that the municipalities characterised by the highest intensity of suburbanisation processes have higher business activity than other municipalities. Location decisions were largely made by business owners in line with behavioural theory. This means that SME owners more often consider personal factors than cost or demand factors. From the perspective of an entrepreneur, living conditions, the quality of public space, education and healthcare are significant.

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Section: Sme Location Factors: Literature Reviewmentioning

confidence: 99%

Determinants of SME location in a suburban area: Evidence from the Gdańsk–Gdynia–Sopot Metropolitan Area

Martyniuk¹,

Gierusz²,

Pęczek³

2017

Urbani izziv

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“…At the same time, it is impossible to recognize and evaluate all possible locations suitable for a firm according to chosen criteria. For this reason, the process of making the location decision is intended to be limited to the most important factors for the most likely locations while making sure all viable alternatives are considered (Vlachou et al 2015).…”

Section: Methodsmentioning

confidence: 99%

Location factors of e-commerce distribution centers in Zachodniopomorskie Vivodeship based on the example of a selected company

Zieziula¹,

Niewiadomska²

2021

JESI

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The issue of enterprise location is one of the fundamental economic question. The problem is frequently undertaken in economists' research, especially in the context of industry and agriculture location, but there still remain numerous queries related to motives underlying location selection by entities operating in other sectors. Whereas factors underlying location of industry have been analyzed thoroughly and discussed in the literature, there still remains a lot to explore regarding factors underlying location of services. The purpose of the study was to identify factors which influenced adoption of location decision as well as comparison between Polish voivodeships in terms of elements playing a role in the decision making process related to location of an e-commerce distribution center. The analysis was based on the literature review. Moreover, the studies involved the in-depth interview technique and direct questionnaire interview. The research covered an enterprise with a foreign capital shareholding, whose business is connected with online sales. In the survey, representatives of the company's management performed a quantitative evaluation of the location factors in three Western Poland voivodeships which were taken into consideration as the location for the distribution center. Finally, the investment was located in Zachodniopomorskie voivodeship, and the analysis performed allowed identification of the factors which influenced the location decision adopted. Results of the analysis suggest that availability of workforce, technical infrastructure and cooperation with local administration representatives were of highest importance from the point of view of e-commerce center location.

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“…However, this impact occurs through different channels, such as investment decisions (Gaviria, 2002;Pshiva and Suarez, 2006;Kimou, 2015), financial sustainability (McDonald, 2008), discouraging business expansion (World Bank and United Nations Office on Drugs and Crime, 2007;Krkoska and Robeck, 2009;Garcia, 2014) and firm innovation (Saridakis et al, 2015) [2]. A strand of the literature seeks to investigate the determinants of business location decisions (Vlachou and Iakovidou, 2015) and in particular the influence of crime on business location (Matti and Ross, 2016). Evidence indicates that crime affects entrepreneurs' decisions regarding the location where to install their businesses.…”

Section: Business Confidence and Crimementioning

confidence: 99%

Effects of crime and violence on business confidence: evidence from Rio de Janeiro

Almeida

Montes

2020

JES

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PurposeDue to the fact that crime and violence affect the economy and the business environment, and since the economic environment affects entrepreneurs' expectations and therefore their decisions, this study analyzes the effect of both violence and crime on the confidence of entrepreneurs from the state of Rio de Janeiro.Design/methodology/approachMaking use of time series methodology, the authors provide OLS and GMM estimates for the effects of violence and crime on the business confidence index of entrepreneurs in Rio de Janeiro. The analysis of the Rio de Janeiro case is relevant since Rio de Janeiro is the second state, after São Paulo, with the largest participation in the Brazilian GDP, and crime and violence have very high indicators in this state. The analysis comprises the period between January 2012 and July 2018 (monthly data).FindingsThe results suggest that violence and crime negatively impact business confidence in Rio de Janeiro. The estimates reveal that, among all economic and noneconomic variables, the third variable with the greatest impact on business confidence is “cargo thefts.” An increase of one standard deviation in this variable reduces business confidence by approximately 2.48 basis points, while increases of one standard deviation in “violent deaths,” “commerce thefts” and “extortion” reduce business confidence by approximately 1.24, 1.46 and 1.47 bp, respectively. The impacts caused by these violence and crime variables are greater than the effect caused by an increase of one standard deviation in the real interest rate.Practical implicationsThe findings reveal that a stable economic environment with economic growth is as important to business confidence as the adoption of policies aimed at increasing public security through the fight against crime and violence.Originality/valueIf on the one hand the literature provides evidence that crime is harmful to the economy, on the other hand no study has so far analyzed the impact of crime and violence on business confidence. This type of analysis is relevant since confidence is an important aspect in the expectation formation process and thus to production and investment decisions and economic activity. Thus, this study is the first to analyze the effects of crime and violence on business confidence and consequently, the first to explore the consequences of crime on the economy through the expectations channel.

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The Evolution of Studies on Business Location Factors

Cited by 16 publications

References 62 publications

Determinants of SME location in a suburban area: Evidence from the Gdańsk–Gdynia–Sopot Metropolitan Area

Determinants of SME location in a suburban area: Evidence from the Gdańsk–Gdynia–Sopot Metropolitan Area

Location factors of e-commerce distribution centers in Zachodniopomorskie Vivodeship based on the example of a selected company

Effects of crime and violence on business confidence: evidence from Rio de Janeiro

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