160 likes | 362 Views
Globalisation: Must the Irish Government choose between Irish firms and MNEs?. Prof. David Jacobson DCU Business School. Can we choose?. Irish Industrial Policy. 1932-1958 ISI 1958-1980/90 ELI through FDI , and EU membership 1980/90-2007 ELI through FDI & indigenous firms
E N D
Globalisation: Must the Irish Government choose between Irish firms and MNEs? Prof. David Jacobson DCU Business School
Irish Industrial Policy • 1932-1958 ISI • 1958-1980/90 ELI through FDI, and EU membership • 1980/90-2007 ELI through FDI & indigenous firms • Linkage Policy (1985) • Pilot Network Programme (1996) • Enterprise Ireland (1998) • Ahead of the Curve (2005)
Global Trends • Fordism • Post-Fordism • Global, local and glocal
Sub-Sector Stories • Furniture industry • Software manual printing industry • Fish processing • Bakeries • Printing
Furniture • Alternative modes of embedded networking: • Monaghan Industrial District – spatial proximity • Torc – organisational proximity • “Stretched” embeddedness: • Recent developments: Monaghan firms’ links abroad
The Genealogical Tree of Furniture in Monaghan Pre- 1950s James O’Reilly & Sons (4) Coyles (147) S F Quinn (29) Key Firms that are directly related to Coyles; their founders worked in Coyles Firms that are indirectly related to Coyles; their founders worked in firms that were established by former employees of Coyles Firms that are not related to Coyles; their founders never worked in Coyles. Sherry Bros. (93) Neeson (27) Glenwood (27) 1950s 1960s McNally & Finlay (72) Woodland (75) K & T (4) 1970s Scotstown (24) S-Mac Kitchens (3) Cadden Carvers (4) Hallmark (32) M Duffy (3) Tydavnet (20) Treanor (2) Callery (2) P McCabe (2) McGuigans (18) Leonard (3) 1980s 1990s D Kerr (3) J Walsh (3) Ferdale (6) Style Woods (2)
The Torc Network • PNP network brokers (Danish model) • Three firms: Dublin, Wicklow, Cork • Joint marketing venture, hotel furniture UK • Mutual learning, e.g. outsourcing
Recent Developments • John E. Coyle - €3m Enterprise Ireland re-equipment grant; impact on local linkages? • Woodland Products – WCM, Romanian partner, 90% exports
Software Manual Printers • Software MNEs in Ireland, 1985-1990 • Microsoft, Apple/Claris, IBM/Lotus, Digital, Oracle, Symantec, Borland • Manual printers • Ormond, Cahills, Printech, Mt Salus, Smurfit, Printcraft, Colorman, Donnelly • Decline of SMPI, rise of CD-ROM, 1995-2003 • Decline of CD-ROM, 2003- • Rise of broadband…
Recent Developments • Sonopress (300); • Zomax bought Kao 2003, Zomax operations in Ireland merged in JV with MPO 2006; • Maxell opened 1996, closed 2001 (70); • Saturn opened 1996, closed 2003.
Other Sub-Sectors • Fish processing: • Leader firm-supplier strategic alliance (Superquinn-Oceanpath) • Printing: • Five Dublin firms in the Printing Consortium of Ireland • Bakeries: • No horizontal cooperation. One major success, Cuisine de France
Conclusions I • Integration of high-tech and low-tech • Rapid introduction of new tech by Irish SMEs in printing industry: market-driven learning? What about Oceanpath? • For indigenous development: preferred suppliers (SMPI) and/or SME networks (PCI, TORC) and/or stretched embeddedness (Coyle, Woodland) and/or autonomous growth (Cuisine de France)? Sub-sector specificity…
Conclusions II • The software MNEs formed alliances with CD-ROM pressing companies - displacing indigenous SMEs; but in fish processing the Superquinn-Oceanpath alliance successful • Institutions: • Informal - Cultural impediments to SME co-operation in printing; but lessons learned, e.g. PCI • Formal - Inappropriate policies/regulation, so delays in broadband; but success elsewhere, e.g. National and Regional Linkage Programmes, and Pilot Network Programme
Conclusions III • Are indigenous firms and MNEs alternatives? • Are there alternative policies? • Can Ireland be a ‘sticky place in slippery space’?