Locational factors bestow competitive advantages if they offer resources that are not easily transferred to other locations. Such resources are either tangible (like natural resources or labour) or intangible (like expertise, or specialized services).

Location-specific resources influence the locations of transnational corporations (TNCs), especially if they complement the expertise of the TNC; the more easily the TNC can influence the location-specific resources, the more likely it is to invest in the professional development of its human capital. The TNC is then less likely to substitute one location for another one. In a study of the location-specific resources of Vienna, Windsperger (2006 South East Eur. J. Econ. & Bus. 20) identifies geographic distance; transport infrastructure; specific human capital; management know-how; historic ties; a multicultural environment; and a high quality of life, as major factors in location specificity.