Qualitative factors as a determinant of firm location: a case study of paddy processing industry in northern India

Tejinder Sharma, Suresh Kumar Turka and Vivek S. Natarajan

International Journal of Indian Culture and Business Management, 2012, vol. 5, issue 2, 111-131

Abstract: The most logical determinant of manufacturing location in paddy processing industry is in close proximity to the raw material. Northern India is the rice bowl of the country, and the basmati varieties are famous throughout the world. There is a concentration of the paddy processing units in few clusters developed in selected towns, defying the econometric paradigm of location. However, the entrepreneurs' subjectivity, emerging as the qualitative factors, seems to play a greater role in selecting the manufacturer location. This paper investigates the qualitative determinants of manufacturing location of paddy processing units. It is found that the entrepreneurs consider the variable costs, input availability, raw material competition and micro-environment of site as the important influencers of the location of a paddy processing unit.

Keywords: firm location; paddy processing; rice milling; qualitative factors; logical determinants; manufacturing locations; raw materials; basmati rice; paddy fields; econometric paradigms; entrepreneurs; subjectivity; location selection; processing units; variable costs; input availability; material competition; micro-environments; influencers; Haryana; agriculture; farmers; farming; India; Indian culture; business management. (search for similar items in EconPapers)
Date: 2012
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