Synergistic networks between multinational subsidiaries and subnational actors: role, interaction and variation within a small, highly globalised economy
posted on 2023-01-18, 13:57authored bySinéad M. Monaghan
Location-specific assets and spatial attributes of foreign direct investment (FDI) are increasingly identified as an important condition for successful economic activity. Drawing upon a nascent interdisciplinary theoretical framework, this thesis seeks to integrate socio-spatial concepts from economic geography (EG) with research within international business (IB) to explore the dynamic engagement between subnational actors and FDI in a small, highly globalised economy. Adopting a multi-method research design, social network analysis (SNA) is combined with qualitative semi-structured interviews in 33 agencies, institutions and organisations across two regions within Ireland to determine the capacity of subnational actors to engage with FDI.
In order to first profile the role of subnational actors who interact with FDI, a structural configuration of the key actors at a subnational level is generated. Building upon this, the processes of relational engagement between subnational actors and FDI are explored. Finally, a cross regional comparison is used to highlight the subnational variation between these actors and FDI within a single country context. The empirical findings demonstrate the role of subnational actors, which are substantially organised and mobilised via customised coalitions in response to the needs of FDI during both attraction and retention of investment. Furthermore, the activities of these coalitions generate a unique sense of subnational empathy through formal and informal relational engagement with FDI. Finally, significant subnational differences are evident in terms of the administrative and colloquial demands on subnational actors which generate substantial spatial heterogeneities. Overall, the mechanisms of engagement between subnational actors contribute towards the initiation, securement and acceleration of inward investment within Ireland.
This study generates important contributions to theory and practice. In particular, the cross-fertilization of concepts from EG to IB enhances this theoretical interface while equally providing novel insights on the role, interaction and variation of subnational actors for foreign investment. Furthermore, this research offers a methodological blend of SNA and qualitative data to illustrate the structural configuration and relational interaction of subnational actors and FDI. Finally, significant policy recommendations are derived from this study in order to further enlighten the process of how interaction with FDI is navigated at a subnational level.
Funding
Using the Cloud to Streamline the Development of Mobile Phone Apps