Location strategy for competitiveness of special economic zones

Abstract

PurposeThe purpose of this paper is to develop a framework for the firms located inside special economic zones (SEZs) in India and to assess the effect of location on competitiveness of the firm.Design/methodology/approachA literature review is done to identify the variables and intermediate variables including sub‐variables which affect the location competitiveness of the firm that leads to superior firm performance. Literature support for all the variables in the framework is discussed to establish a logical sequence.FindingsHypotheses are formulated in a sequential framework to draw relationships between location of a firm in an SEZ as latent function, intermediate functions, and superior firm performance as a dependent function.Research limitations/implicationsThis developed framework is yet to be empirically tested. Such a paper can be applied in manufacturing industries located in an SEZ.Practical implicationsLocation competitiveness is an important strategic decision for industries. The paper on location strategy for competitiveness of SEZs helps in identifying a framework including various prepositions that lead to superior firm performance.Originality/valueThe value of the paper lies in its attempt to propose a relationship between firm location and its effect on firm competitiveness. The approach emphasizes multiple interrelationships between sets of variables and also suggests a quantitative research methodology, i.e. structured equation model, to test empirically.