Office location decision of SMEs

Abstract

This dissertation sets out to empirically test the office space decision of SMEs in Singapore. Empirical data on the location and non-location office determinants of occupiers was collected via a questionnaire from December 2007 to January 2008. Based on a consolidated sample list of 300 firms, 100 respondents from occupiers, which represent a response rate of 33.3% was received. The survey results stresses the important of Rent and Accessibility to Transport Infrastructure in office location while highlighting the differences in allocated perceived importance of location factors by firms of varying technology dependence and with assorted percentage of employees time out of office. Non-location factors, office features, building features and management are found to be as important or show increasingly significance as compared to location factors. This study limits the analysis of external forces, other firms characteristics and possible factors that could have lead to a firm decision on its office location. However, the control on firms characteristics, size, function, technology dependence and employees time out of office, help to minimize generalisation and the results provide support for better catering to the special needs of different types of SMEs.