Abstract
The purpose of this study was to determine what environmental factors are deemed most important to a U.S. owned manufacturing company's decision to establish operations in Singapore. There were six environmental factors included in this study: (1) geocultural distance (geographical separation and degree of westernization), (2) physiographic barriers (the density of various modes of transportation), (3) legal barriers (indicated by the total volume of international exports and imports), (4) economic development and performance (reflected by the gross domestic products and national economic growth), (5) cultural unity (represented by religion, racial and linguistic homogeneity), and (6) political stability (indicated by governmental stability and freedom from radical group opposition). Twenty-one newly established, U.S.-owned manufacturing companies were selected for this study. It was assumed that these U.S.-owned companies have a priority rank order of these environmental factors when investment opportunities are considered. Telephone interviews were conducted with all of the chief executive officers at the Singapore locations to obtain their companies' ranking of the six environmental factors they deemed important in making decisions to invest in Singapore. The results of this study indicates that more than one single environmental factor was considered in the decision process. Political stability and economic development and performance were weighted most heavily among the six environmental factors considered when deciding to establish operations in Singapore. There exists an important relationship between these ranked factors and their controllability by the Singapore government.