Abstract

The article deals with issues related to the development of a strategy for the location of an industrial enterprise. The location strategy is part of the corporate strategy, which defines its values and interests. A corporate location strategy is often linked to an entry strategy. The article introduces a strategic analysis of the factors that determine the location of an industrial enterprise, depending on the evaluation criteria and the industry specifics. The study is based on the theory of strategy and the methodology of strategizing developed by Professor V.L. Kvint. This approach helps to choose the location of an industrial enterprise, consider its global, national, and sectoral long-term development, and take into account its external and internal environment. The strategic analysis of placement factors and alternative options was based on an OTSW-analysis and special decision-making methods. The paper also reviews the relevance of location factors from the first theoretical works to modern empirical studies based on surveys of company managers and econometric analyses. The author designed a general algorithm for developing a strategy for locating an industrial enterprise. The theory of strategy and methodology of strategizing made it possible to neutralize the negative consequences of subjective decisions that still interfere with the location strategizing.

Keywords

strategy, strategic analysis, placement of an industrial enterprise, enterprise strategy, placement factors, OTSW analysis, location of the enterprise

REFERENCES

1. Animitsa YeG, Animitsa PYe, Denisova OYu. Evolution of knowledge about distribution of productive forces. Economy of Regions. 2014;38(2):21–32. (In Russ.)
2. Veber A. Teoriya razmeshcheniya promyshlennosti: S prilozh. raboty Shlira “Promyshlennostʹ Germanii s 1860 g.” [The theory of industrial location: With Schlier's Industry in Germany since 1860]. Leningrad, Moscow: Kniga; 1926. 223 p. (In Russ.)
3. Granberg AG. Osnovy regionalʹnoy ehkonomiki [Fundamentals of regional economy]. Moscow: Izdatelʹskiy dom GU VSHEH; 2004. 495 p. (In Russ.)
4. Izotov DA. New economic geography: The possibilities and restrictions. Spatial Economics. 2013;(3):123–160. (In Russ.)
5. Kvint VL. Kontseptsiya strategirovaniya. T. 1 [The concept of strategizing. Vol. 1.]. St. Petersburg: SZIU RANKhiGS; 2019. 132 p. (In Russ.)
6. Kvint VL. The concept of strategizing. Vol. 2. St. Petersburg: SZIU RANKhiGS; 2020. 162 p. (In Russ.)
7. Kvint VL. Strategicheskoe liderstvo Amira Timura: kommentarii k Ulozheniyu [Strategic leadership of Amir Timur: comments on the Code]. St. Petersburg: RANKhiGS; 2021. 204 p. (In Russ.) https://doi.org/10.22394/978-5-89781-696-5-1-204
8. Kvint VL. Global emerging market: Strategic management and economics. Moscow: Biznes Atlas; 2012. 626 p. (In Russ.)
9. Mariev OS, Davidson NB. Factors determining enterprise location choice in the cities of Russia. Bulletin of Ural Federal University. Series Economics and Management. 2018;17(6):950–969. (In Russ.) https://doi.org/10.15826/vestnik.2018.17.6.042
10. Limonov LEh. Regionalʹnaya ehkonomika i prostranstvennoe razvitie v 2 t. Tom 1: Regionalʹnaya ehkonomika. Teorii, modeli i metody [Regional economy and spatial development in two volumes. Volume 1: Regional economy. Theories, models, and methods]. Moscow: Izdatelʹstvo Yurayt; 2022. 319 p. (In Russ.)
11. Stivenson VDzh. Upravlenie proizvodstvom [Manufacturing control]. Moscow: Izdatelʹstvo BINOM; 1999. 927 p. (In Russ.)
12. Tyunen IG. Izolirovannoe gosudarstvo [Isolated state]. Moscow: Ehkonomicheskaya zhiznʹ; 1926. 326 p. (In Russ.)
13. Badri MA. Dimensions of industrial location factors: Review and exploration. Journal of Business and Public Affairs. 2007;1(2):1–26.
14. Canel C, Das SR. Modeling global facility location decisions: integrating marketing and manufacturing decisions. Industrial Management and Data Systems 2002;102(1–2):110–118. https://doi.org/10.1108/02635570210419654
15. Fujita M. A monopolistic competition model of spatial agglomeration: Differentiated product approach. Regional Science and Urban Economics. 1988;18(1):87–124. https://doi.org/10.1016/0166-0462(88)90007-5
16. Fujita M, Krugman P, Venables AJ. The spatial economy. Cities, regions, and international trade. Cambridge: MIT-Press; 1999. 367 p.
17. Ghorashi R, Mardikoraem M, Seifoddini HK. Manufacturing site selection in a global environment: A new approach based on cluster analysis. Journal of Multidisciplinary Engineering Science and Technology. 2016;3(3):4290–4300.
18. Krugman P. Increasing returns and economic geography. Journal of Political Economy. 1991;99(3):483–499. https://doi.org/10.1086/261763
19. Ulgado FM. Location characteristics of manufacturing investments in the US: A comparison of American and foreign-based firms. MIR: Management International Review. 1996;36(1):7–26.
20. Venables AJ. Equilibrium locations of vertically linked industries. International Economic Review. 1996;37(2):341–359. https://doi.org/10.2307/2527327