IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v9y2019i1d10.1186_s40497-019-0187-x.html
   My bibliography  Save this article

Factors influencing location choice and cluster pattern of manufacturing small and medium enterprises in cities: evidence from Khulna City of Bangladesh

Author

Listed:
  • S. M. Towhidur Rahman

    (Khulna University)

  • Ahsanul Kabir

    (Khulna University)

Abstract

This study aims to identify the location and cluster pattern of manufacturing SMEs in Khulna City and the reasons behind such pattern since localisation of SMEs has significant impact on the economic development of cities and regions. A walking survey was conducted to identify the SME location pattern and a semi-structured personal interview was conducted to collect data from manufacturing SME entrepreneurs to find why such patterns exist. A cross section qualitative multiple case study design and pattern matching technique was applied to answer the research questions. The finding of the study shows SME location choice was influenced by a combination of location specific, personal, and community factors whereby personal factors are prioritised over other factors in location selection. While the cluster formation or localisation of SMEs depends on only location-specific factors. The study findings are expected to contribute in urban planning and regional development through providing useful insights relating allocation of spaces for industry development.

Suggested Citation

  • S. M. Towhidur Rahman & Ahsanul Kabir, 2019. "Factors influencing location choice and cluster pattern of manufacturing small and medium enterprises in cities: evidence from Khulna City of Bangladesh," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-26, December.
    • Handle: RePEc:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-019-0187-x
    DOI: 10.1186/s40497-019-0187-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40497-019-0187-x
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40497-019-0187-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Inge Reijmer & Edwin van Noort, 1999. "Location choice of SMEs," Scales Research Reports B199804, EIM Business and Policy Research.
    2. Wong, Kar-yiu & Yip, Chong K, 1999. "Industrialization, Economic Growth, and International Trade," Review of International Economics, Wiley Blackwell, vol. 7(3), pages 522-540, August.
    3. Chowdhury, Md. Shahnur Azad & Azam, Md Kazi Golam & Islam, Serajul, 2013. "Problems and Prospects of SME Financing in Bangladesh," Asian Business Review, Asian Business Consortium, vol. 2(2), pages 109-116.
    4. Kim, Younjun, 2015. "Essays on firm location decisions, regional development and choices under risk," ISU General Staff Papers 201501010800005579, Iowa State University, Department of Economics.
    5. Yancy Vaillant & Esteban Lafuente & Christian Serarols, 2012. "Location decisions of new ‘Knowledge Intensive Service Activity’ firms: the rural--urban divide," The Service Industries Journal, Taylor & Francis Journals, vol. 32(16), pages 2543-2563, December.
    6. Ha Minh Nguyen & Le Dang Nguyen, 2018. "The relationship between urbanization and economic growth," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(2), pages 316-339, February.
    7. Sridhar, Kala Seetharam & Wan, Guanghua, 2010. "Firm location choice in cities: Evidence from China, India, and Brazil," China Economic Review, Elsevier, vol. 21(1), pages 113-122, March.
    8. Walter Isard, 1949. "The General Theory of Location and Space-Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 63(4), pages 476-506.
    9. Manuel Albaladejo, "undated". "Determinants and Policies to Foster the Competitiveness of SME Clusters: Evidence from Latin America," QEH Working Papers qehwps71, Queen Elizabeth House, University of Oxford.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nur Amira Zainul Armir & Sarani Zakaria & Rawshan Ara Begum & Noratiqah Mohd Ariff & Norshamliza Chamhuri & Jalaluddin Harun & Noorlaila Mohd Talib & Mohd Amin Kadir, 2022. "Factors affecting industrial localization of timber mills in Peninsular Malaysia by econometric and spatial analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7833-7850, June.
    2. Victor Chukwunweike Nwokocha, 2022. "The Influence of Location Decisions on the Performance of Women-owned Small and Medium scale Enterprises in Nigeria," SAGE Open, , vol. 12(4), pages 21582440221, October.
    3. Madhuri Mahato & Julie Vardhan, 2022. "The spatial distribution of self-employment — evidence from Jharkhand," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 291-304, December.
    4. Weiwu Wang & Jingyi Liang & Jie Niu, 2022. "Site Selection of Co-Working Spaces under the Influence of Multiple Factors: A Case Study in Hangzhou, China," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    5. Ogbu, S. Okonkwo, 2022. "The Contributions of Market Facilities in Industrial Location at the 9th Mile Area of Enugu State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 16-28, September.
    6. Jolanta Zieziula & Marta Niewiadomska, 2021. "Location factors of e-commerce distribution centers in Zachodniopomorskie Vivodeship based on the example of a selected company," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 37-51, September.
    7. Zakia Jabeen & Jabir Ali & Nadia Yusuf, 2021. "Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 71-81, December.
    8. Izabela Rogalska, 2020. "Perception of Location Factors by Entrepreneurs and Representatives of Business Environment Institutions," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 600-613.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Madhuri Mahato & Julie Vardhan, 2022. "The spatial distribution of self-employment — evidence from Jharkhand," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 291-304, December.
    2. Saara Tamminen, 2017. "Regional effects or none? Firms' profitability during the Great Recession in Finland," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 33-59, March.
    3. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    4. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    5. Gaurav Bhattacharya, 2019. "Location decisions of industries in the presence of transportation costs and environmental regulations: empirical evidence from India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 24-53, June.
    6. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    7. Andrés Rodríguez-Pose & Edna M. Villarreal Peralta, 2015. "Innovation and Regional Growth in Mexico: 2000–2010," Growth and Change, Wiley Blackwell, vol. 46(2), pages 172-195, June.
    8. Kevin P. Heanue, 2008. "Measuring Industrial Agglomeration in a Rural Industry: The Case of Irish Furniture Manufacturing," Working Papers 0830, Rural Economy and Development Programme,Teagasc.
    9. Tomaz Dentinho & Vasco Silva, 2012. "Optimization of Location Services in the city of Huambo. Confirmation of the Theory of Central Places," ERSA conference papers ersa12p254, European Regional Science Association.
    10. Iris Claus & Les Oxley & Siqi Zheng & Cong Sun & Ye Qi & Matthew E. Kahn, 2014. "The Evolving Geography Of China'S Industrial Production: Implications For Pollution Dynamics And Urban Quality Of Life," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 709-724, September.
    11. Keita Kamei & Hiroaki Sasaki, 2016. "Agricultural Productivity, Infrastructures and the Optimal Timing of Opening Trade," Manchester School, University of Manchester, vol. 84(5), pages 621-641, September.
    12. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    13. Manh-Toan Ho & Ngoc-Thang B. Le & Manh-Tung Ho & Quan-Hoang Vuong, 2022. "A bibliometric review on development economics research in Vietnam from 2008 to 2020," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 2939-2969, October.
    14. José M. Gaspar, 2020. "Paul Krugman: contributions to Geography and Trade," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 99-115, April.
    15. Unjung Whang, 2017. "Structural Transformation and Comparative Advantage: Implications for Small Open Economies," The World Economy, Wiley Blackwell, vol. 40(4), pages 743-763, April.
    16. Minghao Li & Stephan J. Goetz & Mark Partridge & David A. Fleming, 2016. "Location determinants of high-growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 97-125, January.
    17. Reem Hajjar & Olivia Sanchez Badini & Robert A. Kozak, 2017. "Promoting small and medium forest enterprises in national REDD+ strategies: a global analysis of enabling environments," Climate Policy, Taylor & Francis Journals, vol. 17(6), pages 731-763, August.
    18. Opoku, Eric Evans Osei & Aluko, Olufemi Adewale, 2021. "Heterogeneous effects of industrialization on the environment: Evidence from panel quantile regression," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 174-184.
    19. Andrew Phiri, 2020. "Endogenous monetary approach to optimal inflation–growth nexus in Swaziland," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 11(4), pages 559-571, March.
    20. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Jamiu Adetola Odugbesan & Gbenga Daniel Akinsola & Wing-Keung Wong & Husam Rjoub, 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-019-0187-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.