Business Agglomeration-Based Decision Support Systems to Identify Prospective Locations for New Businesses

Abstract

Selecting the right location when establishing new business firm is one imperative key to a successful growth of an establishment. Additionally, previous studies have also found that business firms form business agglomerations that enable these enterprises to collaborate. However, this agglomeration also produces some latent threats, for instance the intraspecific competition between establishments belongs to the same group. Thus, it is then logical to consider the task of selecting business location for a new establishment as a mission of identifying prospective business agglomeration in which the new establishment would be able to compete with existing business firms. This study develops a decision support system that helps to recognize prospective locations for new businesses by incorporating the competition indices within existing business agglomerations. Results from conducted experiment suggest that the developed system is capable to complete such task with a reasonable degree of acceptance.