Purpose – The purpose of this paper is to focus on selection of a location which can widely influence business strategy planning and operation profit.
Design/methodology/approach – In this paper, the relationship between location strategy and clustering is primarily shown by obtaining location decision criteria and the impact of high-tech
firms with the decision-making trial and evaluation laboratory (DEMATEL) method. Then, analytic network process (ANP) method is used to explain the value and benefits from cluster location.
Findings – The authors study decision-making for location selection of high-tech firms in Hsinchu Science Park. The example is based on two dimensions including network effect and transaction cost. Network effect plays a more significant role than transaction cost for this example location selection of high-tech firms in Hsinchu Science Park. The Science Park is surrounded by entrepreneurial spirit, a significant talent pool, and support infrastructure.
Originality/value – This paper explores how high-tech managers make their decisions on location strategy in Science Park.
Research limitations/implications – The authors found that cost and benefit factors of network effect dominate the major decision-making in selection of location and has direct impact on strategic
intent. They also have shown that the DEMATEL and ANP approaches are valuable for evaluating this situation.
Relation:
Journal of Management Research News 31(3) : 228-244
