Peter Doeringer () (Institute for Economic Development, Boston University) Christine Evans-Klock (International Labor Organization) David Terkla (University of Massachusetts, Boston)
Abstract
National data and case studies are used to test the importance of management practices, particularly high performance practices, on the location decisions of new manufacturing plants. We find that plants with high performance management cultures rely on different criteria when making their location decisions, and also weigh standard location criteria differently, than those plants that are managed in more traditional ways. Omitting management culture from studies of business location may, therefore, result in biased estimates of the importance of various traditional location factors. By more accurately specifying location models for manufacturing plants with high performance management cultures, we are able to offer new insights for regional development policy.
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Find related papers by JEL classification: R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy
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