Location strategy for competitiveness of special economic zones: A generic framework for India

Purpose - The purpose of this paper is to develop a framework for the firms located inside special economic zones (SEZs) in India and to assess the effect of location on competitiveness of the firm. Design/methodology/approach - A literature review is done to identify the variables and intermediate variables including sub-variables which affect the location competitiveness of the firm that leads to superior firm performance. Literature support for all the variables in the framework is discussed to establish a logical sequence. Findings - Hypotheses are formulated in a sequential framework to draw relationships between location of a firm in an SEZ as latent function, intermediate functions, and superior firm performance as a dependent function. Research limitations/implications - This developed framework is yet to be empirically tested. Such a paper can be applied in manufacturing industries located in an SEZ. Practical implications - Location competitiveness is an important strategic decision for industries. The paper on location strategy for competitiveness of SEZs helps in identifying a framework including various prepositions that lead to superior firm performance. Originality/value - The value of the paper lies in its attempt to propose a relationship between firm location and its effect on firm competitiveness. The approach emphasizes multiple interrelationships between sets of variables and also suggests a quantitative research methodology, i.e. structured equation model, to test empirically.