SME Competitive Strategy and Location Behavior: An Exploratory Study of High-Technology Manufacturing by Craig S. Galbraith, Carlos L. Rodriguez, and Alex F. DeNoble Forty-four Scottish small and medium-sized high-technology manufacturing firms were surveyed regarding their technology strategies and the impact of regional- and site-specific infrastructure requirements on their location behavior. An empirically derived typology of technology content for high-technology firms was developed via cluster analysis and utilized, together with selected technology and manufacturing strategy variables, to investigate whether significant linkages existed between these variables and firms’ related location decisions. Results suggest that location decisions are directly correlated to a firm’s competitive strategy and that they should actually be considered a dynamic dimension of strategy rather than a static one-time choice. Introduction Regional development of high tech- nology-based industries has attracted the attention of researchers in the fields of industrial management, entrepreneur- ship, economics, and urban planning for the past two decades. More recently, the rapid national and global proliferation of high-technology centers, incubators, and “technopolis” communities has high- lighted the need to more fully under- stand the driving forces behind this growth (e.g., Tamasy 2007; Drejer 2005; Lofsten and Lindelof 2003; Stuart and Sorenson 2003; Biggiero 2002; Preer 1992). One important factor impacting the competitive strategies and location decisions of both high-technology and traditional manufacturing firms is the development of flexible, modular, and cluster-based manufacturing tech- nologies (Small 2007; Dasci 2005; Galbraith and DeNoble 2002; Wadhwa and Rao 2000; Boyer 1999; Boyer et al. 1997; Dean and Snell 1996). Craig S. Galbraith is professor of entrepreneurship and technology in the Cameron School of Business at the University of North Carolina Wilmington. Carlos L. Rodriguez is on the faculty in the Cameron School of Business at the University of North Carolina Wilmington. Alex F. DeNoble is on the faculty in the School of Business at the San Diego State University. Address correspondence to: Craig S. Galbraith, e-mail: galbraithc@uncw.edu. Journal of Small Business Management 2008 46(2), pp. 183–202 GALBRAITH, RODRIGUEZ, AND DENOBLE 183