Abstract
Ireland’s economy is highly dependent on the activities of multinational subsidiaries. OECD (1991) data shows that over 45 per cent of manufacturing employment and almost two-thirds of manufacturing output is attributable to foreign-owned firms. These subsidiaries have been set up in Ireland in three basic time periods:
-
Pre-1921: a small number of companies, including for example Guinness, pre-date the formation of the state in 1921.
-
1921–1960: a number, mostly of UK parentage, were set up to be located inside the trade barriers established by the Irish Government after the formation of the state.
-
Since 1960: a large number of multinational subsidiaries have been established, many of which have been attracted by the range of incentives designed for mobile investment and actively marketed by the Irish Industrial Development Authority (IDA).
An IDA (1994) survey found that there were almost 1100 foreign-owned subsidiaries in manufacturing or IDA-supported international services. Ownership of these subsidiaries was spread across 29 different countries, but parent companies from three home countries — the USA, the UK and Germany — owned almost 70 per cent of the subsidiaries.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Baliga, B.R. and A.M. Jaeger (1984) ‘Multinational Corporations: Control Systems and Delegation Issues’, Journal of International Business Studies, 15 (4), 25–40.
Bartlett, C. and S. Ghoshal (1986) ‘Tap Your Subsidiaries for Global Reach’, Harvard Business Review November–December, 64 (6), 87–94.
Birkinshaw, J. (1995a) ‘Taking the Initiative’, Business Quarterly, 59 (4), Summer, 97–102.
Birkinshaw,J. (1995b) ‘Entrepreneurship in Multinational Corporations: the Initiative Process in Foreign Subsidiaries’, unpublished doctoral thesis, University of Western Ontario.
Birkinshaw, J. (1995c) ‘Encouraging Entrepreneurial Activity in Multinational Corporations’, Business Horizons, 38 (5), May June, 32–37.
Birkinshaw, J. (1995d) ‘Entrepreneurship in Multinational Corporations: Characteristics of Subsidiary Initiatives’, Draft Working Paper, University of Toronto.
Birkinshaw, J. (1997) ‘Entrepreneurship in Multinational Corporations: The Characteristics of Subsidiary Initiatives’, Strategic Management Journal 18 (3), 207–29.
Birkinshaw, J. and W. Ritchie (1993) ‘Balancing the Global Portfolio’, Business Quarterly, 57 (4), Summer, 40–49.
Crookell, H. and A. Morrison (1990) ‘Subsidiary Strategy in a Free Trade Environment’, Business Quarterly, Autumn 1990, 33–39.
D’Cruz, J. (1986) ‘Strategic Management of Subsidiaries’ in H. Etemad and L.S. Dulude (eds), Managing The Multinational Subsidiary: Response to Environmental changes and to Host Nation R&D Policies, London: Croom Helm, 75–89.
Egelhoff, W.G. (1984) ‘Patterns of Control in US, UK and European Multinational Corporations’, Journal of International Business Studies, 15 (4), Fall, 73–83.
Gupta, A.K. and V. Govindarajan (1991) ‘Knowledge Flows and the Structure of Control within Multinational Corporations’, Academy of Management Review, 16 (4), 768–92.
Huber, G.P. and DJ. Power (1985) ‘Retrospective Reports of Strategic Level Managers: Guidelines for Increasing their Accuracy’, Strategic Management Journal, 6, 171–80.
Industrial Development Authority (1994) Overseas Companies in Ireland Dublin: Industrial Development Authority.
Lyons, P. (1995) ‘Subsidiary Survival Through Turbulence’, MSc thesis, Trinity College, Dublin.
Malnight, T.W. (1995) ‘Globalisation of an Ethnocentric Firm: An Evolutionary Perspective’, StrategicManagementJourna4 16, 119–41.
McDonald, D. (1987) ‘Strategies to Increase the Dependence of a Multinational on its Irish Subsidiary’, MSc thesis, Trinity College, Dublin.
Miles, M.B. and A.M. Huberman (1994) Qualitative Data Analysis (2nd edn), Thousand Oaks, Calif.: Sage.
Molloy, E. (1992) ‘Strategic Agenda for a Subsidiary’, unpublished consulting notes and handouts, Advanced Organisation and Management Development Limited, Naas, C. Kildare, Ireland.
Morrison, AJ. and K. Roth (1993) ‘Developing Global Subsidiary Mandates’, Business Quarterly, Summer 1993, 104–10.
Organisation for Economic Cooperation and Development (1991) Economic Surveys Ireland 1990/91, Paris: OECD.
Porter, M. (1986) Competition in Global Industries, Boston, Mass.: Harvard Business School Press.
Rugman, A.M. and S. Douglas (1986) ‘The Strategic Management of Multinationals and World Product Mandates’ in H. Etemad and L.S. Dulude (eds), Managing The Multinational Subsidiary: Response to Environmental changes and to Host Nation R&D Policies, London: Croom Helm, 90–101.
Sargeant, Lee W. (1990) ‘Strategic Planning in a Subsidiary’, Long Range Planning, 23 (2), 43–54.
Taggart, J.H. (1992) ‘Coordination Versus Globalisation: The Multinational’s Dilemma, Multinational Business, no. 3, 1–12.
Taggart J.H. (1993), ‘Multinational Subsidiaries and Host Country Impact’, Strathclyde International Business Unit Working Paper 93/14, Glasgow: University of Strathclyde.
Taggart J.H. (1995) ‘MNC Subsidiary Strategy in Scotland’, Strathclyde International Business Unit Working Paper 95/3, Glasgow: University of Strathclyde.
Thompson,J.D. (1967) Organisations in Action, New York: McGraw-Hill.
White, R.E. and T.A. Poynter (1984) ‘Strategies for Foreign-Owned Subsidiaries in Canada’, Business Quarterly, 48 (4), Summer 1984, 59–69.
Young, S., N. Hood and S. Dunlop (1989) ‘Global Strategies, Multinational Subsidiary Roles and Economic Impact in Scotland’, Regional Studies, 22 (6), 487–97.
Editor information
Editors and Affiliations
Copyright information
© 1998 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Delany, E. (1998). Strategic Development of Multinational Subsidiaries in Ireland. In: Birkinshaw, J., Hood, N. (eds) Multinational Corporate Evolution and Subsidiary Development. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26467-4_10
Download citation
DOI: https://doi.org/10.1007/978-1-349-26467-4_10
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-26469-8
Online ISBN: 978-1-349-26467-4
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)