1. The Social Progress Index in International Business Site Selection: Three Case Studies
- Author
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Pate, Sandra K.
- Abstract
International businesses face a difficult task when trying to decide where to place or expand a business that could be located anywhere in the world. Each country is a complex system of human capabilities, technical systems, [infrastructure bases, laws, cultures and economic systems. How can a company know which country is best for it today, and even more importantly, which country will grow into an appropriate location for future business opportunities? Several studies offer insights into how to make site selection decisions (O'Farrell & Wood, 1994; Papadopoulos et al., 2002; Rothaermel et al., 2006) but the complexity of the data required makes initial analysis across many countries problematic. Most businesses, trying to predict an ideal country or sequence of countries to enter, are left to simple rules of thumb or decision models using limited criteria (Górecka & Szalucka, 2013; Alexander et al., 2011). A wide variety of country data of varying reliability and efficacy are frequently used (Rahman, 2003). Many of the largest companies have developed specialized teams with sophisticated models for site selection. However, for smaller companies finding reliable, consistently measured data they can interpret and analyze in ways that provide useful insights is a challenge. This article introduces the Social Progress Index, launched in April 2013 at the 10th annual Skoll World Forum held at the University of Oxford (The Origins, 2015). The Social Progress Index is unique because it is the most comprehensive framework developed for measuring social progress and the first to measure social progress independently of GDP or other economic variables (Porter, 2015; Keohane, 2015). Three cases have been chosen to demonstrate the usefulness of the Social Progress Index for site selection in three very different circumstances.
- Published
- 2016