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This paper examines the relative role of relationships in shaping business satisfaction with, and commitment to, a business location. Economic and social exchange provides the theoretical perspectives for this study. In particular, this paper addresses the question: is social exchange valued in its own right (as a separate element alongside economic benefits) or does it rather add value to the economic exchange process? That is, is social exchange a benefit, or is it a facilitating condition? These issues are tested using path analysis with data from a survey among executives of manufacturing firms located in a 10-county area of the southeastern United States. The results support a model wherein social exchange facilitates the relationship between location factors (in particular, transportation access, labor quality, and government support) and location satisfaction. |
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