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A cluster concentration typology for making location decisions

Pamela J. Zelbst (Department of Management and Marketing, College of Business Administration, Sam Houston State University, Huntsville, Texas, USA)
Gregory V. Frazier (Information Systems & Operations Management Department, College of Business Administration, University of Texas at Arlington, Arlington, Texas, USA)
Victor E. Sower (Department of Management and Marketing, College of Business Administration, Sam Houston State University, Huntsville, Texas, USA)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 29 June 2010

1479

Abstract

Purpose

Location decisions are among the most costly decisions that organizations make. This research aims to examine location decisions from a macro perspective and to utilize findings for the development of a typology.

Design/methodology/approach

County level source information from the US Census Bureau, the United States (US) Department of Commerce: Bureau of Economic Analysis (BEA), National Association of Counties (NACO), and Fedstats is used in this analysis. Discriminant analysis as a profile analysis is utilized as an objective assessment of differences between the cluster concentrations.

Findings

The resulting typology of clusters concentrations is based on four constructs identified in the literature: innovation, specialization, complementariness and transfer of knowledge. This typology can serve as an aid in making these critical location decisions for practitioners as well as identifying future research topics for academia.

Research limitations/implications

The research is an exploratory study and limited by its nature; therefore cause and effect cannot be definitively stated. Variables such as politics, environment, geography and cultural differences could have confounding effects on the study. The generalizability of the study could be affected because of the geographic location in relationship to national differences based on these and other variables.

Practical implications

This typology of cluster concentrations can be used as a tool for managers when making crucial location decisions.

Originality/value

The research is original in that it takes a more holistic approach to developing a typology of cluster concentrations. Rather than looking at specific industries and focusing on industry clusters, the research focuses on concentrations of industry clusters.

Keywords

Citation

Zelbst, P.J., Frazier, G.V. and Sower, V.E. (2010), "A cluster concentration typology for making location decisions", Industrial Management & Data Systems, Vol. 110 No. 6, pp. 883-907. https://doi.org/10.1108/02635571011055108

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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