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Using a strategic approach to analysis the location selection for high‐tech firms in Taiwan

Hsiao‐Chi Chen (Department of Business Administration, Chung Yuan Christian University, Chung Li, People's Republic of China)
Ya‐Wen Yu (Institute of Management of Technology, National Chiao Tung University, Hsinchu, People's Republic of China)

Management Research News

ISSN: 0140-9174

Article publication date: 31 March 2008

Abstract

Purpose

The purpose of this paper is to focus on selection of a location which can widely influence business strategy planning and operation profit.

Design/methodology/approach

In this paper, the relationship between location strategy and clustering is primarily shown by obtaining location decision criteria and the impact of high‐tech firms with the decision‐making trial and evaluation laboratory (DEMATEL) method. Then, analytic network process (ANP) method is used to explain the value and benefits from cluster location.

Findings

The authors study decision‐making for location selection of high‐tech firms in Hsinchu Science Park. The example is based on two dimensions including network effect and transaction cost. Network effect plays a more significant role than transaction cost for this example location selection of high‐tech firms in Hsinchu Science Park. The Science Park is surrounded by entrepreneurial spirit, a significant talent pool, and support infrastructure.

Originality/value

This paper explores how high‐tech managers make their decisions on location strategy in Science Park.

Research limitations/implications

The authors found that cost and benefit factors of network effect dominate the major decision‐making in selection of location and has direct impact on strategic intent. They also have shown that the DEMATEL and ANP approaches are valuable for evaluating this situation.

Keywords

Citation

Chen, H. and Yu, Y. (2008), "Using a strategic approach to analysis the location selection for high‐tech firms in Taiwan", Management Research News, Vol. 31 No. 4, pp. 228-244. https://doi.org/10.1108/01409170810851311

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited