INDUSTRIAL SPACE SEARCH

Abstract

Once the decision has been taken to proceed with a particular type of industrial investment, a search has to be made by the firm concerned for a satisfactory location and all possible alternatives have to be compared. The extent of the search activity will vary and often is influenced by the size of the organisation and the objectives of the industrialist. Hence, this dissertation attempts to examine the search strategies employed by the various form of organisations.

The analysis has shown that non-local firms (HNCs, Joint Ventures and Foreign Firms) and those industrialists who own industrial premises, tend to examine more units than the local firms and those who leased premises in the selection of industrial space. The former also tend to take a longer time in the process. The more significant constraint faced by firms in their search activity was time. The pressure of time meant that fewer alternative premises could be assessed and the one which appeared to be the most suitable for the present need was usually selected. It was also found that the non-local firms, especially the HNCs, often approached such tasks more systematically with the establishment of objectives and criteria stopping the search. The most frequently employed and relied on sources of information is the JTC. Besides the findings on the search strategies, factors which influence the industrialists' decision to locate at their present sites were analysed. In general, space available for expansion, proximity to labour supply and presence of suitable premises are the more important factors. Through the analysis, it was found that local firms occupying smaller floor space were more mobile than others.