The role of place image for business site selection: a research framework, propositions, and a case study

Business site selection involves a complex interplay of myriad economic and non-economic factors, and due to its strategic implications is important for decision making for both policymakers and companies. On the one hand, cities spend substantial amount of public dollars marketing places to attract and retain potential businesses; on the other companies invest a significant amount on location decisions, land, labor, and capital in quest for long-term sustainable growth. There is an increasing realization that in addition to economic factors, place image is of paramount importance for attracting new businesses and investment (in: Anholt, Places: identity, image, and reputation, Palgrave Macmillan, New York, 2010). In this research paper based on an extensive review of the literature, a research framework and propositions are developed for place image and business site selection. The paper posits that brand, visual image, and reputation will have a positive direct effect on place image, and place image will have a positive direct impact on site selection decision. A recent case study of Amazon that provides valuable insights on factors (e.g., place image) that Amazon considered in its site selection for headquarters 2 decision.