Selecting location for a new business unit in ICT industry
Location theory is studying the impact of location on any economic activity, trying to understand where operations should be settled and what should be the reason for such a decision. The aim of this paper is to discuss and prioritize the key location determinants for successful selection of an o...
| Main Authors: | , , |
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| Format: | Article |
| Language: | deu |
| Published: |
Faculty of Economics University of Rijeka
2018-12-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/upload/12-Marinkovic-Nikolic-Rakicevic-2018-2.pdf |
| Summary: | Location theory is studying the impact of location on any economic activity, trying
to understand where operations should be settled and what should be the reason
for such a decision. The aim of this paper is to discuss and prioritize the key
location determinants for successful selection of an optimal location for a business
unit in the ICT industry. It emphasizes the importance of this concept in ICT sector
today when the digitalization and big internet revolution occurs. The initial
determinants were formed based on the literature review and evaluated through
two rounds of the Delphi study among experts from ICT companies in Serbia. The
second goal of the study was to reach a consensus about the relative importance of
the agreed determinants. According to the obtained results using the AHP decisionmaking
model, the priority in selecting a location for a business unit in the ICT
industry is human resource availability, second is the political and economic
environment, and the third is the competition. The paper finds that political and
economic strategies start to play an important role in ICT market, as governments
are getting more interested in this industry. The study confirmed that due to a
shortage of labour supply and fierce competition in the ICT sector, the concept of
location selection is an important success factor for sustainable growth and
development of ICT organizations |
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| ISSN: | 1331-8004 1846-7520 |