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CHAUDHARY, Kapil
Department of Computer Science Engineering, Bipin Tripathi Kumaun Institute of Technology, Dwarahat, Uttrakhand, India
Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Industrial & Manufacturing Engineering Mechanical Engineering Transportation

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Comparative analysis of tangible and intangible factors in selecting the optimal location for a small-scale industry MUSA, Adekunle Ibrahim; CHAUDHARY, Kapil; POHETO, Daniel Jesuyon
Journal Industrial Servicess Vol 12, No 1 (2026): April 2026
Publisher : Universitas Sultan Ageng Tirtayasa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62870/jiss.v12i1.35862

Abstract

Selecting an optimal location is critical for the sustainability and competitiveness of small-scale industries. This study evaluates three Nigerian states Lagos, Ogun, and Oyo using a multi-criteria decision-making (MCDM) approach. A Simple Additive Weighting (SAW) model was applied to assess both tangible factors and intangible factors. Data were collected from 30 purposively selected respondents and secondary sources. Results indicated that Oyo State ranks highest (7.85), followed by Lagos and Ogun (7.64 each). The study concludes that Oyo is the best option for cost-conscious investors, Lagos suits businesses prioritizing infrastructure, while Ogun is viable for low-cost operations with manageable security risks. The robustness of the results was confirmed by a sensitivity analysis (70:30 weighting). The paper is significant as it incorporates tangible-intangible trade-offs in the location choices of SMEs in the framework of a developing economy. The findings emphasize a holistic approach to location selection. Future studies should explore technology and sustainability in industrial location decisions.
Co-Authors Musa, Adekunle Ibrahim POHETO, Daniel Jesuyon