Firm Size and Use of Information Sources in Location Decisions

Abstract

A mail survey of agriculture and forestry businesses examined how firms obtain information for consideration in location decisions and if firm size influenced size influenced the use of different information sources. Factor analysis identified three types of information sources considered in location decisions, “development agencies”, “mass media”, and “personal experience”. Owners and or managers of smallsize businesses (less than nine employees) used these information sources less than decision makers in larger sized firms. In addition to finding that use of these information sources varied according to firm size, results from this study suggest that information searches by businesses may differ from information searches conducted by consumers looking to purchase products or services.