Segmenting manufacturers' investment incentive preferences for international logistics zones

Purpose - This study aims to empirically identify investment incentive preference segments for international logistics zones from the manufacturer's perspective.Design methodology approach - Eight critical investment incentives were identified, based on the following factors: cost, agglomeratio...

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Bibliographic Details
Published in:International journal of operations & production management 2008-02, Vol.28 (2), p.106-129
Main Authors: Lu, Chin-Shan, Liao, Chun-Hsiung, Yang, Ching-Chiao
Format: Article
Language:English
Subjects:
Cluster analysis
Distribution management
Efficiency
Exports
Foreign investment
Global economy
Incentives psychology
International
International investments
Investors
Location of industry
Logistics
Manufacturers
Manufacturing
Operations management
Packaging
Ports
Studies
Tax incentives
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Summary:Purpose - This study aims to empirically identify investment incentive preference segments for international logistics zones from the manufacturer's perspective.Design methodology approach - Eight critical investment incentives were identified, based on the following factors: cost, agglomeration, resource, port, policy, political stability, location and transport, and economic. Cluster analysis was subsequently performed to group respondents on the basis of their factor scores. Three groups or segments were identified: firms that preferred political stability and location factors; those which preferred low-cost and port-related factors; and those which preferred agglomeration effect and resource factors. Six factors, i.e. cost, agglomeration effect, resource, port, policy, and political stability, differed significantly across the three segments.Findings - Results suggest that political stability is the most important incentive, followed by corporate tax incentives, government administration efficiency, labor cost, and energy cost.Originality value - This study is a first attempt to understand investment incentive preferences for an international logistics zone from the manufacturers' perspective and to segment investors into different groups.
ISSN:0144-3577
1758-6593
DOI:10.1108/01443570810846865