Government and the creation of the celtic tiger: Can management maintain the momentum?

Academy of Management Executive

Volumn 16, Issue 3, 2002, Pages 104-120

  O'Higgins, Eleanor R E ^a  

^a UNIVERSITY COLLEGE DUBLIN   (Ireland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0036704344     PISSN: 10795545     EISSN: None     Source Type: Journal    
DOI: 10.5465/ame.2002.8540354     Document Type: Conference Paper

References (90)

1. The FDS was conceived by Sean O'Riain, an Irish political scientist at Berkeley, University of California. He depicts the FDS, especially as applied to the software industry in Ireland, in O'Riain, S. 2000. The flexible developmental state: Globalization, information technology and the Celtic tiger. Politics and Society, 28: 157-193.
2. Ireland ranked seventh out of 49 countries in 2001 on competitiveness, including government and business efficiency. It ranked third out of 155 countries on 'Economic freedom,' gauged by factors such as trade policy and regulation. The World Competitiveness Scorecard is issued by IMD, the International Institute for Management Development, and the Index of Economic Freedom by the Heritage Foundation and Wall Street Journal.
3. The data on Ireland's performance are taken from several sources: Duffy, D., FitzGerland, J., Here, J., Kearney, I., & MacCoille, C. 2001. Ireland: Medium-term review 2001-2007. Dublin: Economic and Social Research Institute; OECD, Economic survey of Ireland, 1999 and 2002; Central Bank of Ireland. 2001 summer bulletin; United Nations. 2001. Human development report 2001: Making new technologies work for human development. Oxford: Oxford University Press; and The Economist. Economic and social indicators. 1 September 2001, 88.
4. The data on Ireland's performance are taken from several sources: Duffy, D., FitzGerland, J., Here, J., Kearney, I., & MacCoille, C. 2001. Ireland: Medium-term review 2001-2007. Dublin: Economic and Social Research Institute; OECD, Economic survey of Ireland, 1999 and 2002; Central Bank of Ireland. 2001 summer bulletin; United Nations. 2001. Human development report 2001: Making new technologies work for human development. Oxford: Oxford University Press; and The Economist. Economic and social indicators. 1 September 2001, 88.
5. The data on Ireland's performance are taken from several sources: Duffy, D., FitzGerland, J., Here, J., Kearney, I., & MacCoille, C. 2001. Ireland: Medium-term review 2001-2007. Dublin: Economic and Social Research Institute; OECD, Economic survey of Ireland, 1999 and 2002; Central Bank of Ireland. 2001 summer bulletin; United Nations. 2001. Human development report 2001: Making new technologies work for human development. Oxford: Oxford University Press; and The Economist. Economic and social indicators. 1 September 2001, 88.
6. The data on Ireland's performance are taken from several sources: Duffy, D., FitzGerland, J., Here, J., Kearney, I., & MacCoille, C. 2001. Ireland: Medium-term review 2001-2007. Dublin: Economic and Social Research Institute; OECD, Economic survey of Ireland, 1999 and 2002; Central Bank of Ireland. 2001 summer bulletin; United Nations. 2001. Human development report 2001: Making new technologies work for human development. Oxford: Oxford University Press; and The Economist. Economic and social indicators. 1 September 2001, 88.
7. The data on Ireland's performance are taken from several sources: Duffy, D., FitzGerland, J., Here, J., Kearney, I., & MacCoille, C. 2001. Ireland: Medium-term review 2001-2007. Dublin: Economic and Social Research Institute; OECD, Economic survey of Ireland, 1999 and 2002; Central Bank of Ireland. 2001 summer bulletin; United Nations. 2001. Human development report 2001: Making new technologies work for human development. Oxford: Oxford University Press; and The Economist. Economic and social indicators. 1 September 2001, 88.
8. There is common consensus about Ireland's sad situation at the time, described by a number of observers: MacSharry, R., & White, P. 2000. The making of the Celtic Tiger. Cork: Mercier Press; O'Donnell, R. 1998. Ireland's economic transformation. University of Pittsburgh Center for Western European Studies, European Union Center (Working Paper No. 2); Lee, J.J. 1989. Ireland 1912-1985. Cambridge: Cambridge University Press; and O'Toole, F. 1994. Black hole, green card: The disappearance of Ireland. Dublin: New Island Books.
9. There is common consensus about Ireland's sad situation at the time, described by a number of observers: MacSharry, R., & White, P. 2000. The making of the Celtic Tiger. Cork: Mercier Press; O'Donnell, R. 1998. Ireland's economic transformation. University of Pittsburgh Center for Western European Studies, European Union Center (Working Paper No. 2); Lee, J.J. 1989. Ireland 1912-1985. Cambridge: Cambridge University Press; and O'Toole, F. 1994. Black hole, green card: The disappearance of Ireland. Dublin: New Island Books.
10. There is common consensus about Ireland's sad situation at the time, described by a number of observers: MacSharry, R., & White, P. 2000. The making of the Celtic Tiger. Cork: Mercier Press; O'Donnell, R. 1998. Ireland's economic transformation. University of Pittsburgh Center for Western European Studies, European Union Center (Working Paper No. 2); Lee, J.J. 1989. Ireland 1912-1985. Cambridge: Cambridge University Press; and O'Toole, F. 1994. Black hole, green card: The disappearance of Ireland. Dublin: New Island Books.
11. There is common consensus about Ireland's sad situation at the time, described by a number of observers: MacSharry, R., & White, P. 2000. The making of the Celtic Tiger. Cork: Mercier Press; O'Donnell, R. 1998. Ireland's economic transformation. University of Pittsburgh Center for Western European Studies, European Union Center (Working Paper No. 2); Lee, J.J. 1989. Ireland 1912-1985. Cambridge: Cambridge University Press; and O'Toole, F. 1994. Black hole, green card: The disappearance of Ireland. Dublin: New Island Books.
12. Factors in Ireland's success are delineated in MacSharry, R., & White, P. 2000, op, cit.; Gray, A. 1998. International perspectives on the Irish economy and the implications for sustaining economic advantage. In Proceedings of the NESC seminar on sustaining competitive advantage. Dublin: National Economic and Social Council; and Sweeney, P. 1998. The Celtic Tiger. Dublin: Oak Tree Press.
13. Factors in Ireland's success are delineated in MacSharry, R., & White, P. 2000, op, cit.; Gray, A. 1998. International perspectives on the Irish economy and the implications for sustaining economic advantage. In Proceedings of the NESC seminar on sustaining competitive advantage. Dublin: National Economic and Social Council; and Sweeney, P. 1998. The Celtic Tiger. Dublin: Oak Tree Press.
14. Factors in Ireland's success are delineated in MacSharry, R., & White, P. 2000, op, cit.; Gray, A. 1998. International perspectives on the Irish economy and the implications for sustaining economic advantage. In Proceedings of the NESC seminar on sustaining competitive advantage. Dublin: National Economic and Social Council; and Sweeney, P. 1998. The Celtic Tiger. Dublin: Oak Tree Press.
15. The cutback on government spending might have had deflationary consequences in a large economy. However, in a small economy like Ireland, the fiscal multiplier effect is not as large. Also, the cutbacks were in the non-productive, non-traded sectors of government spending.
16. The PNR was negotiated between three constituencies: (1) government representatives acted as both mediators and employers in their own right, (2) workers were represented by the umbrella body for the trade unions known as the Irish Congress of Trade Unions (ICTU), and (3) employers were represented by the umbrella bodies for business. The latter were the Confederation of Irish Industry (CII) and the Federated Union of Employers (FUE). These two associations amalgamated into the Irish Business and Employers Confederation (IBEC) in 1993.
17. The mission and strategic thrust of the new National Centre for Partnership and Performance are spelled out in a strategic planning discussion document issued in late 2001.
18. The demographic and educational changes and their effects are documented in a number of reports: Duffy, D., et al., op. cit.; NCB Stockbrokers. 1998. Population and prosperity: Sustaining the boom. Dublin; O'Connell, P.J., with Gash, V., & O'Donnell, R. 1999. Country Employment Policy Reviews (CEPR)-Ireland. Social dialogue and employment success: An ILO symposium, Geneva, 2-3 March. The drop in birth rate reflected social changes, mainly emerging widespread family planning practices and more married women working outside the home.
19. The demographic and educational changes and their effects are documented in a number of reports: Duffy, D., et al., op. cit.; NCB Stockbrokers. 1998. Population and prosperity: Sustaining the boom. Dublin; O'Connell, P.J., with Gash, V., & O'Donnell, R. 1999. Country Employment Policy Reviews (CEPR)-Ireland. Social dialogue and employment success: An ILO symposium, Geneva, 2-3 March. The drop in birth rate reflected social changes, mainly emerging widespread family planning practices and more married women working outside the home.
20. The demographic and educational changes and their effects are documented in a number of reports: Duffy, D., et al., op. cit.; NCB Stockbrokers. 1998. Population and prosperity: Sustaining the boom. Dublin; O'Connell, P.J., with Gash, V., & O'Donnell, R. 1999. Country Employment Policy Reviews (CEPR)-Ireland. Social dialogue and employment success: An ILO symposium, Geneva, 2-3 March. The drop in birth rate reflected social changes, mainly emerging widespread family planning practices and more married women working outside the home.
21. Kenichi Ohmae makes much of the advantage of English as a platform for enterprise and innovation through the domination of the 'Cyber dimension' by English, in Ohmae, K. 2000. The invisible continent. New York: HarperCollins. The attractions of Dublin for young educated EU workers are depicted by Kieran Cooke. Blessed with the 'X' factor. Financial Times, 4 October 1999. Cooke describes the 'X' factor as something over and above planning and decision making that attracts business and youth in a virtuous cycle.
22. Kenichi Ohmae makes much of the advantage of English as a platform for enterprise and innovation through the domination of the 'Cyber dimension' by English, in Ohmae, K. 2000. The invisible continent. New York: HarperCollins. The attractions of Dublin for young educated EU workers are depicted by Kieran Cooke. Blessed with the 'X' factor. Financial Times, 4 October 1999. Cooke describes the 'X' factor as something over and above planning and decision making that attracts business and youth in a virtuous cycle.
23. This vision is enunciated in the Third Report of Ireland's Information Society Commission, December 2000; and in Kinsella, R., & McBrierty, V.J. 1998. Ireland and the knowledge economy. Dublin: Oak Tree Press.
24. The data are contained in United Nations, 2001, op. cit. The TAS Index measures technology creation, diffusion of innovations, and human skills. The EU-devised measure reference is: Commission of the European Communities. 2001. 2001 innovation scorecard. Brussels.
25. The data are contained in United Nations, 2001, op. cit. The TAS Index measures technology creation, diffusion of innovations, and human skills. The EU-devised measure reference is: Commission of the European Communities. 2001. 2001 innovation scorecard. Brussels.
26. In the 1970s, a zero tax rate for manufacturing and export income, plus direct grants for total capital investment and staff training, were important financial incentives to foreign MNC investors. By the 1980s, a base of established FDI provided credibility to Ireland as a favorable site. This credibility and the increasing availability of a skilled English-speaking labor supply in the 1980s allowed for a reducing proportion of grants for capital investment down to 50 percent and a 10 percent corporate tax rate on manufactured goods and all exports, expiring in 2010-without unduly jeopardizing FDI. As of 1999, the generosity of the grants had been capped by the EU in all but the poorest areas of the country-the borders, midlands and west, or BMW, while the 10 percent corporate tax rate had been raised to 12.5 percent. However, this rate is still comparatively very attractive in the European context.
27. The IDA acronym stands for Industrial Development Agency. Much of the information on the organization comes from the author's experience as a non-executive director of IDA Ireland. The role and operations of IDA Ireland are spelled out in MacSharry, R., and White, P., op. cit., and in Pearcey, G. 2000. Critical success factors for a foreign direct investment programme. Unpublished MBA dissertation, University College Dublin. In fact, IDA Ireland is generally regarded with respect not only in political circles and among the Irish populace but also by investment and development agencies from many countries and regions around the world. Numerous delegations come to Ireland to try to learn from IDA Ireland's success.
28. The IDA acronym stands for Industrial Development Agency. Much of the information on the organization comes from the author's experience as a non-executive director of IDA Ireland. The role and operations of IDA Ireland are spelled out in MacSharry, R., and White, P., op. cit., and in Pearcey, G. 2000. Critical success factors for a foreign direct investment programme. Unpublished MBA dissertation, University College Dublin. In fact, IDA Ireland is generally regarded with respect not only in political circles and among the Irish populace but also by investment and development agencies from many countries and regions around the world. Numerous delegations come to Ireland to try to learn from IDA Ireland's success.
29. The term 'Strategic intent' was coined by Gary Hamel and C.K. Prahalad in a 1989 article, 'Strategic intent' in the Harvard Business Review, May-June, 63-76. It is defined as an obsession with winning at all organizational levels, sustained over decades, in a quest for global leadership. All of these attributes are features of IDA Ireland.
30. The information on direct effects is drawn from the year 2000 Annual Reports of (1) Forfas, the Irish National Policy and Advisory Board for Enterprise, Trade, Science, Technology and Innovation, (2) IDA Ireland, and (3) the International Trade and Investment Report published by Forfas.
31. The spillover issue is discussed by Young, S., Hood, N., & Peters, E. 1994. Multinational enterprises and regional economic development. Regional Studies, 28: 657-677.
32. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
33. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
34. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
35. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
36. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
37. Several pieces of research endorse subsidiary initiative: Birkinshaw, J. 1998. Corporate entrepreneurship in network organizations. Long Range Planning, 16(3): 355-364; Birkinshaw, J., & Hood, N. 2001. Unleash innovation in foreign subsidiaries. Harvard Business Review, March-April: 131-137; Birkinshaw, J., Hood, N., & Jonsson, S. 1998. Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19: 221-241; Ferdows, K. 1997. Making the most of foreign factories. Harvard Business Review, March-April: 72-88; Stewart, J.M. 1995. Empowering foreign subsidiaries. Long Range Planning, 28(4): 63-73; and Kathuria, V. 2000. Productivity spillovers from technology transfer to Indian manufacturing firms. Journal of International Development, 12: 342-269.
38. Young, S., & Hood, N. 1994. Designing developmental aftercare programmes for foreign direct investors in the European Union. Transnational Corporations, 3(2): 45-72.
39. Taggart discusses the multiplicity of models for subsidiary relationships in two articles: Taggart, J.H. 1997. Autonomy and procedural justice: A framework for evaluating subsidiary strategy. Journal of International Business Studies, 28(1): 51-76; and Taggart, J.H. 1998. Strategy and control in the multinational corporation; Too many recipes? Long Range Planning, 31(4): 571-585.
40. Taggart discusses the multiplicity of models for subsidiary relationships in two articles: Taggart, J.H. 1997. Autonomy and procedural justice: A framework for evaluating subsidiary strategy. Journal of International Business Studies, 28(1): 51-76; and Taggart, J.H. 1998. Strategy and control in the multinational corporation; Too many recipes? Long Range Planning, 31(4): 571-585.
41. Delany, E. 1998. Strategic development of multinational subsidiaries in Ireland. In J. Birkinshaw & N. Hood (Eds). Multinational corporate evolution and subsidiary development. Basingstoke: Macmillan; and Delany, E. 2000. Strategic development of the multinational subsidiary through subsidiary initiative taking. Long Range Planning, 33: 220-244. Development agencies, especially in locations of the UK, have adopted the Delany model, and some of them, such as the Scottish Development Authority, run training workshops, led by Ed Delany.
42. Delany, E. 1998. Strategic development of multinational subsidiaries in Ireland. In J. Birkinshaw & N. Hood (Eds). Multinational corporate evolution and subsidiary development. Basingstoke: Macmillan; and Delany, E. 2000. Strategic development of the multinational subsidiary through subsidiary initiative taking. Long Range Planning, 33: 220-244. Development agencies, especially in locations of the UK, have adopted the Delany model, and some of them, such as the Scottish Development Authority, run training workshops, led by Ed Delany.
43. Egelhoff, W.G., German, L., & McCormick, S. 1998. Using technology as a path to subsidiary development. In Birkinshaw & Hood, op. cit., 213-238.
44. The Chambers of Commerce of Ireland. 2000. Labour force 2000. Dublin.
45. The evidence for this comes from Cleveland, J.N., Gunnigle, P., Heraty, N., Morley, M., & Murphy, K.R. 2000. U.S. multinationals and human resource management. Irish Business and Administrative Research, 21(1): 9-28; Geary, J.F., & Roche, W.K. 2001. Multinationals and human resource practices in Ireland: A rejection of the 'New conformance' thesis. International Journal of Human Resources Management, 12(1): 1-19; Roche, W.K. Accounting for the trend in trade union recognition in Ireland. Industrial Relations Journal, 32(1): 37-54; and Roche, W.K., & Geary, J.F. 2000. 'Collaborative production' and the Irish boom: Work organization, partnership and direct involvement in the Irish workplace. The Economic and Social Review, 31(1): 1-36.
46. The evidence for this comes from Cleveland, J.N., Gunnigle, P., Heraty, N., Morley, M., & Murphy, K.R. 2000. U.S. multinationals and human resource management. Irish Business and Administrative Research, 21(1): 9-28; Geary, J.F., & Roche, W.K. 2001. Multinationals and human resource practices in Ireland: A rejection of the 'New conformance' thesis. International Journal of Human Resources Management, 12(1): 1-19; Roche, W.K. Accounting for the trend in trade union recognition in Ireland. Industrial Relations Journal, 32(1): 37-54; and Roche, W.K., & Geary, J.F. 2000. 'Collaborative production' and the Irish boom: Work organization, partnership and direct involvement in the Irish workplace. The Economic and Social Review, 31(1): 1-36.
47. The evidence for this comes from Cleveland, J.N., Gunnigle, P., Heraty, N., Morley, M., & Murphy, K.R. 2000. U.S. multinationals and human resource management. Irish Business and Administrative Research, 21(1): 9-28; Geary, J.F., & Roche, W.K. 2001. Multinationals and human resource practices in Ireland: A rejection of the 'New conformance' thesis. International Journal of Human Resources Management, 12(1): 1-19; Roche, W.K. Accounting for the trend in trade union recognition in Ireland. Industrial Relations Journal, 32(1): 37-54; and Roche, W.K., & Geary, J.F. 2000. 'Collaborative production' and the Irish boom: Work organization, partnership and direct involvement in the Irish workplace. The Economic and Social Review, 31(1): 1-36.
48. The evidence for this comes from Cleveland, J.N., Gunnigle, P., Heraty, N., Morley, M., & Murphy, K.R. 2000. U.S. multinationals and human resource management. Irish Business and Administrative Research, 21(1): 9-28; Geary, J.F., & Roche, W.K. 2001. Multinationals and human resource practices in Ireland: A rejection of the 'New conformance' thesis. International Journal of Human Resources Management, 12(1): 1-19; Roche, W.K. Accounting for the trend in trade union recognition in Ireland. Industrial Relations Journal, 32(1): 37-54; and Roche, W.K., & Geary, J.F. 2000. 'Collaborative production' and the Irish boom: Work organization, partnership and direct involvement in the Irish workplace. The Economic and Social Review, 31(1): 1-36.
49. Geary & Roche, ibid.
50. These findings were reported in Kearns, A., & Ruane, F. 1999. The tangible contribution of R & D spending in foreign owned plants to a host region: A plant level study of the Irish manufacturing sector (1980-1996). Trinity Economic Paper Series Technical Paper 99/7, JEL Classification F23,O30, Dublin: Trinity College.
51. Kathuria, op. cit. (Note 18).
52. The concentration of FDI in financial services, electronics, and software in Ireland is described in the European investment monitor 2002 report, published by Ernst & Young.
53. op. cit. (Note 3).
54. The 1992 study was led by one of Michael Porter'S research assistants and reported in Culliton, J. 1992. A time for change: Industrial policy for the 1999s. Report of the Industrial Policy Review Group, Dublin: Stationery Office. The clustering concept relates back to Michael Porter'S idea that a nation or a region attains international success in a particular industry thanks to four mutually reinforcing attributes-'The diamond.' The four attributes are factor conditions, demand conditions, related industries, and the strategies, structures, and rivalry among firms in the industry. Porter's ideas as related to local/national development are elaborated in Porter, M.E. 1998. Clusters and the new economics of competition. Harvard Business Review, November-December: 77-90. His original diamond concept appears in Porter, M.E. 1990. The competitive advantage of nations. New York: The Free Press.
55. The 1992 study was led by one of Michael Porter's research assistants and reported in Culliton, J. 1992. A time for change: Industrial policy for the 1999s. Report of the Industrial Policy Review Group, Dublin: Stationery Office. The clustering concept relates back to Michael Porter's idea that a nation or a region attains international success in a particular industry thanks to four mutually reinforcing attributes-'The diamond.' The four attributes are factor conditions, demand conditions, related industries, and the strategies, structures, and rivalry among firms in the industry. Porter's ideas as related to local/national development are elaborated in Porter, M.E. 1998. Clusters and the new economics of competition. Harvard Business Review, November-December: 77-90. His original diamond concept appears in Porter, M.E. 1990. The competitive advantage of nations. New York: The Free Press.
56. The 1992 study was led by one of Michael Porter's research assistants and reported in Culliton, J. 1992. A time for change: Industrial policy for the 1999s. Report of the Industrial Policy Review Group, Dublin: Stationery Office. The clustering concept relates back to Michael Porter's idea that a nation or a region attains international success in a particular industry thanks to four mutually reinforcing attributes-'The diamond.' The four attributes are factor conditions, demand conditions, related industries, and the strategies, structures, and rivalry among firms in the industry. Porter's ideas as related to local/national development are elaborated in Porter, M.E. 1998. Clusters and the new economics of competition. Harvard Business Review, November-December: 77-90. His original diamond concept appears in Porter, M.E. 1990. The competitive advantage of nations. New York: The Free Press.
57. The findings are reported in two papers contained in the 1998 Proceedings of the NESC Seminar, Sustaining competitive advantage. Dublin: National Economic and Social Council: Clancy, P., O'Malley, E., & O'Connell, L. 1998. Culliton's clusters: Still the way to go? 15-47; and O'Donnell, R. Post-Porter: Exploring strategy for the Irish context 'Sustaining competitive advantage,' 48-67.
58. The findings are reported in two papers contained in the 1998 Proceedings of the NESC Seminar, Sustaining competitive advantage. Dublin: National Economic and Social Council: Clancy, P., O'Malley, E., & O'Connell, L. 1998. Culliton's clusters: Still the way to go? 15-47; and O'Donnell, R. Post-Porter: Exploring strategy for the Irish context 'Sustaining competitive advantage,' 48-67.
59. The findings are reported in two papers contained in the 1998 Proceedings of the NESC Seminar, Sustaining competitive advantage. Dublin: National Economic and Social Council: Clancy, P., O'Malley, E., & O'Connell, L. 1998. Culliton's clusters: Still the way to go? 15-47; and O'Donnell, R. Post-Porter: Exploring strategy for the Irish context 'Sustaining competitive advantage,' 48-67.
60. This conclusion is attributed to John Dunning who has investigated FDI across a broad spectrum of countries and industries, in Dunning, J.H. 1992. The competitive advantage of countries and the activities of transnational corporations. Transnational Corporations, 1: 135-168.
61. Rugman, A.M., & D'Cruz, J.R. 2000. Multinationals as flagship firms. Oxford: Oxford University Press; and Rugman, A.M. 2000. The end of globalization. London: Random House. Rugman contends that globalization is often exaggerated and that MNCs operate regionally, in the triad markets of North America, Europe, and Japan.
62. Rugman, A.M., & D'Cruz, J.R. 2000. Multinationals as flagship firms. Oxford: Oxford University Press; and Rugman, A.M. 2000. The end of globalization. London: Random House. Rugman contends that globalization is often exaggerated and that MNCs operate regionally, in the triad markets of North America, Europe, and Japan.
63. Dully, et al., op. cit. (Note 3).
64. Networking is depicted by Cooke, P. Enterprise support policies in dynamic European regions: Policy implications for Ireland; and O'Doherty, D. Networking in Ireland: Policy responses. Beth are in 1998, Proceedings of the NESC Seminar, Sustaining competitive advantage, Dublin: National Economic and Social Council.
65. Enterprise Ireland (EI), the agency for indigenous company development, is especially active in the networking efforts. Like IDA Ireland, it has embedded itself in key locations abroad, often sharing premises with IDA Ireland. EI locations include various cities in Western and Eastern Europe, the Middle East, Australia, and the U.S.
66. 37 Young & Hood, op. cit. (Note 19).
67. Birkinshaw, op. cit. (Note 18); Delany, op. cit. (Note 21).
68. Birkinshaw, op. cit. (Note 18); Delany, op. cit. (Note 21).
69. Young & Hood, op. cit.
70. The broker role in this context consists of bringing together potential parties to a network, helping them to avail themselves of networking opportunities in transactions that are mutually beneficial, and generally maintaining and enhancing the network by finding new members and scope for beneficial action. The maintenance function includes dispute prevention and/or resolution among members.
71. Fitzsimons, P., O'Gorman, C., & Roche, F. 2001. Global Entrepreneurship Monitor (GEM) 2000. How entrepreneurial is Ireland? Dublin: University College Dublin.
72. Commission of the European Communities. 2001. 2001 Innovation Scorecard. Brussels. (As in Note 12.).
73. O'Connell, L., & O'Dennell, R. 2001. Picturing Irish indigenous economic and organizational development-An international perspective. Paper presented at the Irish Academy of Management, 6-7 September, Derry.
74. Dully, D., et al., op. cit. The ESRI considered a number of scenarios in their forecast. After the events of September 11, the latest Report gives the most emphasis to a world 'Slowdown' scenario.
75. This appears in Brown, J.M. Why Irish eyes are still smiling over IT sector. Financial Times, 7 May 2001.
76. This threat to FDI in Ireland comes from Central and East European countries which are about to join the EU. According to an Ernst & Young survey (Note 28), the Czech Republic and Hungary pulled ahead of Ireland in the number of FDI projects attracted in 2001. The upcoming challenges to Ireland from CEE countries are delineated in Barry, F., & Hannan, A. 2001. Will EU enlargement threaten Ireland's foreign direct investment inflows? Quarterly Economic Commentary (ESRI), December: 55-67.
77. This threat to FDI in Ireland comes from Central and East European countries which are about to join the EU. According to an Ernst & Young survey (Note 28), the Czech Republic and Hungary pulled ahead of Ireland in the number of FDI projects attracted in 2001. The upcoming challenges to Ireland from CEE countries are delineated in Barry, F., & Hannan, A. 2001. Will EU enlargement threaten Ireland's foreign direct investment inflows? Quarterly Economic Commentary (ESRI), December: 55-67.
78. Hannigan, K. 2000. Ireland's economic performance: A view from the MNCs. Irish Business and Administrative Research, 21(1): 85-102.
79. This question was raised by Maev-Ann Wren in The Irish Times, 18 May 2000, in a series examining the implications of Ireland's economic boom.
80. The inequalities and shortfalls in infrastructure and public sector services are described in: Auer, P. 1999. Social dialogue and employment success: Four small European economies compared. ILO Symposium, Geneva; and in O'Connell, et al., 1999, op. cit. (Note 9).
81. The inequalities and shortfalls in infrastructure and public sector services are described in: Auer, P. 1999. Social dialogue and employment success: Four small European economies compared. ILO Symposium, Geneva; and in O'Connell, et al., 1999, op. cit. (Note 9).
82. O'Riain, op. cit.
83. These facts are connected to an Information Society Ireland 2000 Report (Note 12) citing Ireland's position on an IDC/World Times Information Society Index as moving from twenty-third to nineteenth position between 1996 and 2000 (from the third to the second division). Perhaps Ireland does not fare as well on this Index as on other technology indicators because this Index takes account of social inclusiveness in information technology. This finding duplicates Ireland's overall UN human development ranking of 17 (United Nations. 2001-Note 3), which is worse than its economic and technology rankings because social, poverty, and inequality factors are included.
84. These facts are connected to an Information Society Ireland 2000 Report (Note 12) citing Ireland's position on an IDC/World Times Information Society Index as moving from twenty-third to nineteenth position between 1996 and 2000 (from the third to the second division). Perhaps Ireland does not fare as well on this Index as on other technology indicators because this Index takes account of social inclusiveness in information technology. This finding duplicates Ireland's overall UN human development ranking of 17 (United Nations. 2001-Note 3), which is worse than its economic and technology rankings because social, poverty, and inequality factors are included.
85. Ohmae, op. cit. (Note 10).
86. This statistic refers to a joint survey carried out by AT Kearney Consultants and Foreign Policy magazine (January/ February 2002). The Globalization Index is based on four criteria: (1) Economic integration-trade and FDI capital flows; (2) Personal contact-international travel and tourism, telephone traffic, and cross-border transfers; (3) Technology-internet use and servers; (4) Political engagement-memberships in international organizations, number of embassies. On the last point, it is relevant that Ireland was voted to the UN Security Council in 2001, that the UN High Commissioner for Human Rights is former Irish president Mary Robinson, and an Irish Member of the European Parliament, Pat Cox, was elected President of the European Parliament in January 2002.
87. The transnational corporation is described by Bartlett, C.A., & Ghoshal, S. 2000. Text, cases and readings in cross border management (3rd ed.). Boston: Irwin McGraw-Hill; and by Johnson, G., & Scholes, K. 2002. Exploring corporate strategy (6th ed.). Harlow, Essex, UK: Pearson. The transnational corporation is related to the notion of the 'Geocentric' oriented company, first described by Howard V. Perlmutter. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, January-February: 9-18.
88. The transnational corporation is described by Bartlett, C.A., & Ghoshal, S. 2000. Text, cases and readings in cross border management (3rd ed.). Boston: Irwin McGraw-Hill; and by Johnson, G., & Scholes, K. 2002. Exploring corporate strategy (6th ed.). Harlow, Essex, UK: Pearson. The transnational corporation is related to the notion of the 'Geocentric' oriented company, first described by Howard V. Perlmutter. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, January-February: 9-18.
89. The transnational corporation is described by Bartlett, C.A., & Ghoshal, S. 2000. Text, cases and readings in cross border management (3rd ed.). Boston: Irwin McGraw-Hill; and by Johnson, G., & Scholes, K. 2002. Exploring corporate strategy (6th ed.). Harlow, Essex, UK: Pearson. The transnational corporation is related to the notion of the 'Geocentric' oriented company, first described by Howard V. Perlmutter. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, January-February: 9-18.
90. The networked company is well delineated in de Wit, B., & Meyer, R. 1998. Strategy: Process, content, context, London: Thomson.