Role of modern factors in location enterprises decisions on the example of the construction sector

Abstract

The decision-making process the enterprises have to go through in order to chose a location for their business is complex and involves many factors. Apparently, traditional factors which are often identified with cost-related factors are not the standard, or a sole basis for choosing a location for an enterprise. New factors continue to emerge, as a result of current technological progress and development of society. They are often referred to as modern factors and they accompany the birth of new businesses which respond to contemporary consumer needs and create new products and services. In principle, a decision concerning the location of business is influenced by many factors, classified both as traditional (classical) factors and modern factors. Furthermore, the literature in field offers a distinction between hard and soft factors i.e. measurable and non-measurable factors, which have a different importance in a decision-making process. Their impact is dependent on the type of business and a size of an enterprise and the stage of decision-making. Most commonly the human factor, related to decision- makers’ characteristics and motives, plays an important role in the decision-making process. This factor is rather difficult to measure. The paper discusses and identifies the importance of the modern factors, with a particular emphasis on the personal aspect of the decision-making process in locating enterprises.