Manufacturing Site Location Preferences of Small Agribusiness Firms

Abstract

This study examined the perceived importance of site location characteristics identified in a 1999 survey of 198 small Tennessee agribusinesses. Responding firms ranked proximity to buyers/customers, labor, and raw materials above other factors. However, the relative importance of all factors varied by industry subsector. For example, compared to food processing firms, textile milling and lumber/wood products firms perceived community incentives as less important. Projected firm growth and current location also affected the perceived importance of site location factors. The diversity of perceived factor importance across agribusiness subsectors supports the idea that incentives and promotion of site location factors to attract small agribusiness may need to be tailored to meet specific firms' needs.

Cluster Formation by Foreign Firms in Emerging Economies and International Joint Ventures

“…Numerous studies have proposed that since firm clustering and its resultant knowledge spillover basically reflect positive public good nature (Appold 1995), governments should encourage the concentration of firms in geographic proximity through diverse public policy measures (e.g., subsidies, industrial zones, government-managed technical centers, and community incentive packages) in order to foster formal and informal contacts, business and non-business collaboration opportunities, and synergy effects among cluster participants (Appold 1995; Jensen and Pompelli 2002; Kim 2005; Van Dijk and Sverrisson 2003; Yamawaki 2002). However, based on a comprehensive literature review, the empirical results on the role of government policies affecting cluster formation are mixed, with no consensus (Holmes 1998).…”