Business location decision: the behavioural aspect in empirical research

Abstract

The behavioural location theory helps to understand business location decisions which are not explained in the perfect rationality paradigm. In this article, we survey empirical research on business location decisions which include the behavioural aspect. We conclude that entrepreneurs appear to be biased towards choosing locations in their place of residence and are reluctant to make complicated location analysis. We also indicate the research gap – a lack of research on the impact of heuristics on location decisions.