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Qualitative factors as a determinant of firm location: a case study of paddy processing industry in northern India

Author

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  • Tejinder Sharma
  • Suresh Kumar Turka
  • Vivek S. Natarajan

Abstract

The most logical determinant of manufacturing location in paddy processing industry is in close proximity to the raw material. Northern India is the rice bowl of the country, and the basmati varieties are famous throughout the world. There is a concentration of the paddy processing units in few clusters developed in selected towns, defying the econometric paradigm of location. However, the entrepreneurs' subjectivity, emerging as the qualitative factors, seems to play a greater role in selecting the manufacturer location. This paper investigates the qualitative determinants of manufacturing location of paddy processing units. It is found that the entrepreneurs consider the variable costs, input availability, raw material competition and micro-environment of site as the important influencers of the location of a paddy processing unit.

Suggested Citation

  • Tejinder Sharma & Suresh Kumar Turka & Vivek S. Natarajan, 2012. "Qualitative factors as a determinant of firm location: a case study of paddy processing industry in northern India," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 5(2), pages 111-131.
    • Handle: RePEc:ids:ijicbm:v:5:y:2012:i:2:p:111-131
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