Open AccessThe Effectiveness of Location Incentive: An Analytical Study of Manufacturing SMEs in The Kedah State
Author(s) -
Jan Jan Soo,
Asan Ali Golam Hassan,
Hock Eam Lim
Publication year - 2009
Publication title -
international journal of management studies/international journal of management studies
Language(s) - English
Resource type - Journals
eISSN - 2232-1608
pISSN - 2180-2467
DOI - 10.32890/ijms.16.2.2009.9973
Subject(s) - incentive , product (mathematics) , business , industrial organization , distribution (mathematics) , logistic regression , economics , microeconomics , statistics , mathematics , mathematical analysis , geometry
The main objective of this research is to find out the effectiveness of location incentive in attracting Small and Medium Enterprises (SMEs) to a certain industrial location in the state of Kedah. The location choice identified in this research would be Sungai Petani and non-Sungai Petani industrial areas. By using the logit model, we found that location incentive is not as effective as other factors in attracting SMEs in setting up their establishments in Kedah. The important factors that influence the location choice of manufacturing SMEs are (i) the years of operation of an SME, and (ii) the physical distribution of an SME product.