Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness

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.