Selecting location for a new business unit in ICT industry

Abstract

Location theory is studying how location is impacting any economic activity, trying to answer where operations should settle and what is the reasoning behind such decisions. The aim of this paper is to discuss and prioritize the key location determinants for successful selection of an optimal location in ICT industry and to emphasize the importance of this concept in ICT sector, given the trends and changes global economy is facing, specially today with digitalization and big internet revolution. The initial determinants were formed based on the literature review and evaluated through two round Delphi study among experts from ICT companies in Serbia. The second goal of the study was to reach consensus about relative importance between agreed determinants. According to the obtained results using AHP decision making model, the first priority in location selection in ICT industry is human resource availability, second priority should be placed on the political and economic environment and the third priority should be placed on the competition. It can be concluded that political and economic strategies are starting to play a bigger role in ICT market, as governments are getting more interested in this industry. The study confirmed that due to a shortage of supply and fierce competition in the ICT sector, the concept of location selection is an important success factor for sustainable growth and development of ICT organizations.