Abstract:

Location choice is one of the most significant issues in the strategic management of companies. Through its impact on operating costs and revenues, work effectiveness and access to market location decisions can influence the development of companies’ competitive advantage. The long-term and high-risk nature of location decision-making implies the necessity of conducting a very detailed analysis of many different location factors. Apparently, traditional factors which are often identified with cost-related factors are not the standard or a sole basis for choosing companies’ location. Nowadays, as a consequence of current technological progress,  globalisation and internationalisation of companies’ activities and due to the growing importance of human and social capital in economic processes, new factors continue to emerge.