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Business Location and Success: The Case of Internet Café Business in Indonesia

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 6 No. 2 (2004) · pp. 171–192

DOI
10.22146/gamaijb.5543
ISSN
2338-7238, 1411-1128
Published
2004-06-12
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng

Abstract

This research aims to examine the relationship between business location decision and business success. The case is Internet café business in Indonesia. This research is addressed to answer these main questions: (1) what factors do underlie location decision for an Internet café business?; and (2) does location decision determine success of Internet café business? A field research is conducted to answer these questions.Factor analysis applied to 17 location factors reveals five underlying dimensions of business location decision. They are centrality, business environment, business venue, cost, and labor. Based on responses from 93 Internet cafés in three locations (i.e. Yogyakarta, Surabaya, and Lombok), the author finds that favorable location of business is positively related to business success. More specifically, a regression analysis reveals that availability of utilities, proximity to schools/universities and security affect business success in a positive direction, while proximity to highways, being in commercial center affect in a negative direction. The independent variables explain 23 percent of total variance.

Keywords

Collaboration network of the authors

3 authors · 2 co-authorship links · 2 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Gadjah Mada
  • University of Agder
  • Delft University of Technology
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Stein KrinstiansenUniversity of Agder1
Marina van GEENHUIZENDelft University of Technology1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Business Location and Success: The Case of Internet Café Business in Indonesia</dc:title>
	<dc:creator>Indarti, Nurul</dc:creator>
	<dc:subject xml:lang="en-US">business location; business success; location factor; Internet café; Indonesia</dc:subject>
	<dc:description xml:lang="en-US">This research aims to examine the relationship between business location decision and business success. The case is Internet café business in Indonesia. This research is addressed to answer these main questions: (1) what factors do underlie location decision for an Internet café business?; and (2) does location decision determine success of Internet café business? A field research is conducted to answer these questions.Factor analysis applied to 17 location factors reveals five underlying dimensions of business location decision. They are centrality, business environment, business venue, cost, and labor. Based on responses from 93 Internet cafés in three locations (i.e. Yogyakarta, Surabaya, and Lombok), the author finds that favorable location of business is positively related to business success. More specifically, a regression analysis reveals that availability of utilities, proximity to schools/universities and security affect business success in a positive direction, while proximity to highways, being in commercial center affect in a negative direction. The independent variables explain 23 percent of total variance.</dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:date>2004-06-12</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/5543</dc:identifier>
	<dc:identifier>10.22146/gamaijb.5543</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 6, No 2 (2004): May-August; 171 - 192</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/5543/4514</dc:relation>
</oai_dc:dc>