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Corporate Headquarters Location Preferences in the South African Metropolitan Areas: A Conjoint Analysis Approach

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  • Thabelo Ramantswana
  • Koech Cheruiyot
  • Samuel Azasu

Abstract

The preferences of location for corporate headquarters (CHQs) vary across different contexts. We reviewed the location preference levels among the South African CHQs located in different metropolitan municipalities (metros). The study was conducted using an online survey across the Johannesburg Stock Exchange (JSE)-listed companies in South Africa. The self-explicated conjoint model was used to analyze the trade-offs that CHQs make amongst the competing attributes of location. The findings reveal that access, developed infrastructure, proximity to supporting industries and service providers, access to a skilled labor force, frequent and efficient flights, favorable property taxes, tax incentives, and a favorable legal and regulatory framework are the most preferred attributes of location. The location preference levels explain the concentration of CHQs in particular metros, thereby challenging policy makers, property developers, and investors to facilitate improvements in other metros so as to attract CHQs.

Suggested Citation

  • Thabelo Ramantswana & Koech Cheruiyot & Samuel Azasu, 2019. "Corporate Headquarters Location Preferences in the South African Metropolitan Areas: A Conjoint Analysis Approach," Journal of Real Estate Literature, Taylor & Francis Journals, vol. 27(2), pages 227-244, December.
    • Handle: RePEc:taf:rjelxx:v:27:y:2019:i:2:p:227-244
    DOI: 10.22300/0927-7544.27.2.227
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