The Effectiveness of Location Incentive: An Analytical Study of Manufacturing SMEs in The Kedah State

Authors

  • Soon Jan Jan College of Arts and Sciences Universiti Utara Malaysia, Malaysia
  • Asan Ali Golam Hassan College of Arts and Sciences Universiti Utara Malaysia, Malaysia
  • Lim Hock Eam College of Arts and Sciences Universiti Utara Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijms2009.16.2.6

Keywords:

Location, SME, FT2, Kedah, Icentive, logit model. BACKGROUND OF THE STUDY

Abstract

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.

 

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Published

28-12-2009

Issue

Vol. 16 No. 2 (2009): International Journal of Management Studies (IJMS) Vol. 16, No. 2 December 2009

Section

Articles

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Harvested 2026-09-08
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Identifiers DOI 10.32890/ijms2009.16.2.6

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