Track: Operations Management

Abstract

The paper presents the data on the Exploratory Analysis of Factors involved in location decision factors of manufacturing and service SMMEs in Johannesburg, South Africa. This study is a descriptive exploratory study based on the importance and satisfaction of location decision factors. The statistical sample included manufacturing and service SMMEs owners or managers. A questionnaire adapted from previous studies was develop in order to collect data, and reliability and validity of the questionnaires were validated using SPSS. The Exploratory Factor Analysis technique was used to categorize, simplify, and explain location decision factors identified in the literature. Two hundred and eleven (211) questionnaires were collected and used the analysis. The findings of the Exploratory Factor Analysis resulted in 12 main factors of location decision. Since Factor Analysis can lead to an infinite number of solutions, it was therefore up to the researcher to determine which one to choose. Hence, considerable researcher judgment was critical in conducting Exploratory Factor Analysis and achieving rational results. This research contributes in the knowledge of operations management, precisely location decision. Furthermore, this study provides recommendations for future researchers aiming to deepen location decision research using the results of this study.