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The Significance of Business Localization Factors in the Czech Republic

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Jirásková E., Žižka M.
Creative and Knowledge Society
|
2011
|
vol. 1
|
issue 2
16-36
EN
This article is concerned with the significance of individual localization factors during the decision-making of economic subjects regarding the location of their businesses. In the first phase of the research, the investigated localization factors were divided into four groups into regional, local, business, labor and infrastructure. The selected localization factors were investigated with the help of an empirical examination of thirteen selected economic branches in the secondary and tertiary sectors. In subsequent stages, a statistical analysis of the acquired data was performed; the selected economic sections were compared among themselves; and with the help of a diffusion analysis, the dependence of the evaluation on the size of the enterprise and on the economic activities of the selected respondents was investigated. The main goal of the research was to identify the current localization factors associated with supplier and customer markets and to determine their significance. In the context of the research, the hypothesis was verified that despite the existence of various approaches to determining localization factors, in part there are localization factors that act universally in all economic branches and further factors that specifically manifest themselves only in some branches. In the context of each factor, investigated was whether the evaluation of a factor depends on the economic branch and whether it is possible to consider an investigated factor as universal. It was also determined whether or not the evaluation of a factor is directly proportionate to the size of the business. From the research results, it follows that during localization, businesses place the greatest significance on the availability of information and communications technologies, geographic proximity to customers, availability of qualified human resources and on transportation costs. Localization decision-making is affected by many factors and depends on a large number of circumstances.
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