Springer Nature is making SARS-CoV-2 and COVID-19 research free. View research | View latest news | Sign up for updates

Diaspora investment promotion via public–private partnerships: Case-study insights and IB research implications from the Succeed in Ireland initiative

Abstract

Recent research in international business and related fields suggests that a country’s overseas migrant populations can facilitate its inward flow of foreign direct investment (FDI). How do recipient-country governments interested in attracting more migrant-facilitated FDI respond? We provide the first exploratory study of recipient-country response by examining a public–private partnership (PPP) between government-run investment promotion agencies and diaspora-focused non-governmental organizations (NGOs). Evidence from a review of the Succeed in Ireland initiative, a partnership between the Investment Development Agency of Ireland and an NGO called ConnectIreland, provides novel insights into PPP strengths and weaknesses. We use these insights to develop propositions for future research and practical guidance on the optimal PPP design to attract more migrant-facilitated FDI.

This is a preview of subscription content, log in to check access.

References

  1. Aalbers, M. 2009. Geographies of the financial crisis. Area, 41(1): 34-42.

  2. Agunias, D. R. 2013. How to improve diaspora engagement. The Guardian, February 20. https://www.theguardian.com/global-development-professionals-network/2013/feb/20/improving-asian-diaspora-insitutions. Accessed 13 May 2019.

  3. Agunias, D., & Newland, K. 2012. Developing a road map for engaging diasporas in development: A handbook for policymakers and practitioners in home and host countries. Grand-Saconnex: International Organization for Migration.

  4. Anderson, J., & Sutherland, D. 2015. Developed economy investment promotion agencies and emerging market foreign direct investment: The case of Chinese FDI in Canada. Journal of World Business, 50(4): 815-825.

  5. Artz, K.W. and Brush, T.H., 2000. Asset specificity, uncertainty and relational norms: An examination of coordination costs in collaborative strategic alliances. Journal of Economic Behavior & Organization, 41(4): 337-362.

  6. Barry, F., & Fathartaigh, M. Ó. 2015. The Industrial Development Authority, 1949–58: Establishment, evolution and expansion of influence. Irish Historical Studies, 39(155): 460-478.

  7. Bingham, L. B., Nabatchi, T., & O’Leary, R. 2005. The new governance: Practices and processes for stakeholder and citizen participation in the work of government. Public Administration Review, 65(5): 547–558.

  8. Boly, A., Coniglio, N., Prota, F. & Seric, A. 2012. Diaspora investments and firm export performance in selected sub-Saharan African countries. UNIDO working paper.

  9. Brinkerhoff, J.M. 2011. Diasporas and conflict societies: Conflict entrepreneurs, competing interests or contributors to stability and development? Conflict, Security & Development, 11(02): 115-143.

  10. Buckley, P. J. 2018. Towards a theoretically-based global foreign direct investment policy regime. Journal of International Business Policy, 1(3-4): 184-207.

  11. ConnectIreland. 2012a. Ennis Chamber Breakfast Briefing to showcase reward for jobs initiative [Press release], 25 June. http://connectireland.com/packs/ci/press_releases/ennis_chamber.pdf. Accessed 13 May 2019.

  12. ConnectIreland. 2012b. Martin Sheen, Michael Flatley and Saoirse Ronan on ConnectIreland. https://www.youtube.com/watch?v=KzNBvmSQZM0. Accessed 13 May 2019.

  13. ConnectIreland. 2012c. Irish-American Lord of the Dance Michael Flatley to support Irish job creation [Press release], March 17. http://connectireland.com/packs/ci/press_releases/st_patricks_day_press%20release. Accessed 13 May 2019.

  14. ConnectIreland. 2012d. Succeed in Ireland initiative announces its first company win Intergeo Services to establish EMEA headquarters in Carlow with the creation of 30 jobs [Press release], May 24. http://connectireland.com/packs/ci/press_releases/succeed_in_ireland_initiative_announces_its_first_company_win.pdf. Accessed 13 May 2019.

  15. ConnectIreland. 2013. 83 jobs announced in Cork and Dublin under the Succeed in Ireland Initiative by Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and Minister Richard Bruton [Press release], 4 October. http://connectireland.com/packs/ci/press_releases/sound&sea_ia_innovation_smi_bayne_law-83_jobs.pdf. Accessed 13 May 2019.

  16. ConnectIreland. 2014a. Emigrants could be home for good if we all played our part, ConnectIreland campaigners say [Press release], 23 December. http://connectireland.com/packs/ci/press_releases/daa_gaa_christmas_campaign.pdf. Accessed 13 May 2019.

  17. ConnectIreland. 2014b. Irish people, through their connections, introduce 36 companies to Ireland, which plan to create 1,000 jobs [Press release], 3 December. http://connectireland.com/packs/ci/press_releases/irish_people_introduce_36_companies_to_ireland_to_create_1000_jobs.pdf. Accessed 13 May 2019.

  18. ConnectIreland. 2014c. Meath Gaeltacht area to benefit from jobs boost as Clearplas establish operations. [Press release], 3 December. http://connectireland.com/packs/ci/press_releases/clearplas_19_jobs.pdf. Accessed 13 May 2019.

  19. Coughlin, C. C., & Segev, E. 2000. Location determinants of new foreign-owned manufacturing plants. Journal of Regional Science, 40(2): 323-351.

  20. Cummings, M., & Gamlen, A. 2019. Diaspora engagement institutions and venture investment activity in developing countries. Journal of International Business Policy (this issue).

  21. DIOC. 2011. Database on Immigrants in OECD and non-OECD countries. http://www.oecd.org/els/mig/dioc.htm. Accessed 13 May 2019.

  22. Deakin, S., & J. Michie. 1997. The theory and practice of contracting. In S. Deakin & J. Michie (Eds), Contracts, co-operation and competitionStudies in economics, management and law: 1–39. Oxford: Oxford University Press.

  23. Debass, T., & Ardovino, M. 2009. Diaspora direct investment (DDI): The untapped resource for development. Washington, DC: United States Agency for International Development. http://pdf.usaid. gov/pdf_docs/PNADO983.pdf.

  24. Deloitte. 2007. Closing the infrastructure gap – The role of public private partnerships. London: Deloitte Research. https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Finance/Corporate%20Finance/2006_closing_infrastructure_gap_deloitte_ireland.pdf. Accessed 13 May 2019.

  25. Esty, B. C. 2004. Why study large projects? An introduction to research on project finance. European Financial Management, 10(2): 213–224.

  26. Esty, B. C., & Ferman, C. 2001. The Chad-Cameroon Petroleum Development and Pipeline Project (B). Harvard Business School Supplement 202–012, October 2001.

  27. Fanning, E. P. 1984. United States investment in Ireland. Vanderbilt Journal of Entertainment & Technology Law, 17: 563.

  28. Gamlen, A., 2006. Diaspora engagement policies: What are they and what kinds of states use them? Working paper. https://www.compas.ox.ac.uk/2006/wp-2006-032-gamlen_diaspora_engagement_policies/. Accessed 13 May 2019.

  29. Gamlen, A., Cummings, M. E., & Vaaler, P. M. 2019. Explaining the rise of diaspora institutions. Journal of Ethnic and Migration Studies, 45(4): 492-516.

  30. Gereffi, G., 2019. Global value chains and international development policy: Bringing firms, networks and policy-engaged scholarship back in. Journal of International Business Policy, 2: 195–210.

  31. Garvin, M. J., & Bosso, D. 2008. Assessing the effectiveness of infrastructure public–private partnership programs and projects. Public Works Management & Policy, 13(2), 162-178.

  32. Gould, D. M. 1994. Immigrant links to the home country: Empirical implications for US bilateral trade flows. Review of Economics and Statistics, 76(2): 302-316.

  33. Graham, B. 2014. Diaspora-owned firms and social responsibility, Review of International Political Economy, 21(2): 432-466.

  34. Griffin, D. 2012. Making the right connections. The Irish World, July 7. http://connectireland.com/packs/ci/press_releases/making_the_right_connections-the_irish_world.pdf. Accessed 13 May 2019.

  35. Guimón, J., & Filippov, S. 2017. Competing for high-quality FDI: Management challenges for investment promotion agencies. Institutions and Economies, 4: 25-44.

  36. Harding, T., & Javorcik, B. S. 2011. Roll out the red carpet and they will come: Investment promotion and FDI inflows. The Economic Journal, 121(557): 1445-1476.

  37. Head, K., & Ries, J. 2010. Do trade missions increase trade? Canadian Journal of Economics/Revue canadienne d’économique, 43(3): 754-775.

  38. Head, C.K., Ries, J.C. and Swenson, D.L., 1999. Attracting foreign manufacturing: Investment promotion and agglomeration. Regional Science and Urban Economics, 29(2): 197-218.

  39. Hodge, G. A., & Greve, C. 2007. Public–private partnerships: An international performance review. Public Administration Review, 67(3), 545-558.

  40. Hodge, G.A. and Greve, C., 2017. On public–private partnership performance: A contemporary review. Public Works Management & Policy, 22(1): 55-78.

  41. Iammarino, S. 2018. FDI and regional development policy. Journal of International Business Policy, 1(3–4): 157–183.

  42. IDA. 2003. IDA Ireland Annual Report. Dublin.

  43. IDA Ireland, n.d. FAQs. www.idaireland.com/about-ida. Accessed 13 May 2019.

  44. IDA Ireland. 2012. Annual report and accounts. https://www.idaireland.com/IDAIreland/media/docs/About-IDA/IDA_Annual_Report_2012.pdf. Accessed 13 May 2019.

  45. IDA Ireland accused of blocking potential job creators. 2017. RTE, March 22. https://www.rte.ie/news/2017/0322/861648-connect-ireland/. Accessed 13 May 2019.

  46. Invest India, n.d. About us. https://www.investindia.gov.in/about-us. Accessed 13 May 2019.

  47. James, B. E., & Vaaler, P. M. 2018. Minority rules: Credible state ownership and investment risk around the world. Organization Science, 29(4): 653-677.

  48. Javorcik, B.S., Özden, Ç., Spatareanu, M. and Neagu, C., 2011. Migrant networks and foreign direct investment. Journal of Development Economics, 94(2): 231-241.

  49. Jensen, M. C., & Meckling, W. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3: 305–360.

  50. Kolk, A., Rivera-Santos, M., & Rufín, C. 2018. Multinationals, international business, and poverty: A cross-disciplinary research overview and conceptual framework. Journal of International Business Policy, 1(1-2): 92-115.

  51. Leblang, D., 2010. Familiarity breeds investment: Diaspora networks and international investment. American Political Science Review, 104(3): 584-600.

  52. Li, Y., Hernandez, E., & Gwon, S. 2019. When do ethnic communities affect foreign location choice? Dual entry strategies of Korean Banks in China. Academy of Management Journal, 62(1): 172-195.

  53. Loewendahl, H. 2001. A framework for FDI promotion. Transnational Corporations, 10(1): 1-42.

  54. Lonsdale, C. 2005. Risk transfer and the UK private finance initiative: A theoretical analysis. Policy and Politics, 33: 231–249.

  55. Martinez, C., Cummings, M. E., & Vaaler, P. M. 2015. Economic informality and the venture funding impact of migrant remittances to developing countries. Journal of Business Venturing, 30(4): 526-545.

  56. McWilliams, D. 2007. Ireland’s future depends on diaspora’s ‘soft power’. http://www.davidmcwilliams.ie/irelands-future-depends-on-diasporas-soft-power/. Accessed 13 May 2019.

  57. Monagan, D. 2013. Psst! Cash on the barrelhead for moving jobs to Ireland. Forbes, March 4.

  58. Morisset, J. 2003. Does a country need a promotion agency to attract foreign direct investment?: A small analytical model applied to 58 countries (Vol. 3028). Washington, DC: World Bank Publations.

  59. Morisset, J., & Andrews-Johnson, K. 2004. The effectiveness of promotion agencies at attracting foreign direct investment (Vol. 16). Washington, DC: World Bank.

  60. Mudambi, R., & Pedersen, T. 2007. Agency theory and resource dependency theory: Complementary explanations for subsidiary power in multinational corporations. In T. Pedersen and H. Volberda (eds) Bridging IB theories, constructs, and methods across cultures and social sciences. Basingstoke: Palgrave Macmillan pp. 1–16.

  61. Musacchio, A., & Lazzarini, S. G. 2014. Reinventing state capitalism: Leviathan in business, Brazil and beyond. Cambridge, MA: Harvard University Press.

  62. Myers, M. D. 2013. Qualitative research in business and management, 2nd edn. London: Sage.

  63. O’Connor, F. 2017. Clune banking on global fintech deals, Independent, June 18, https://www.independent.ie/business/irish/clune-banking-on-global-fintech-deals-35837197.html. Accessed 13 May 2019.

  64. O’Donoghue, P. 2017a. A shelved scheme to create jobs could be replaced after falling short of its target. Fora, February 10. https://fora.ie/connect-ireland-jobs-ida-3232479-Feb2017/. Accessed 13 May 2019.

  65. O’Donoghue, P. 2017b. If this was France we would protect our jobs. In Ireland we don’t seem to care. Fora, March 21. https://fora.ie/connect-ireland-cancelled-ida-3298865-Mar2017/. Accessed 13 May 2019.

  66. O’Halloran, M. 2017. Fianna Fáil appeals to Minister over IDA ‘competitor’. The Irish Times, March 23. https://www.irishtimes.com/news/politics/oireachtas/fianna-f%C3%A1il-appeals-to-minister-over-ida-competitor-1.3022561. Accessed 13 May 2019.

  67. Patton, M.Q. 2002. Qualitative research and evaluation methods. Thousand Oaks, CA: Sage.

  68. Pfeffer, J., & Salancik, G. R. 1978. The external control of organizations: A resource dependence perspective. New York: Harper and Row.

  69. Rawhouser, H., Cummings, M. E., & Marcus, A. 2018. Sustainability standards and stakeholder engagement: Lessons from carbon markets. Organization & Environment, 31(3): 263–282.

  70. Reeves, E., 2008. The practice of contracting in public private partnerships: Transaction costs and relational contracting in the Irish schools sector. Public Administration, 86(4): 969-986.

  71. Reilly, T., & Collins, K. 2008. Science and the Gaelic sports: Gaelic football and hurling. European Journal of Sport Science, 8(5): 231-240.

  72. Riddle, L, Brinkerhoff, J.M and Nielsen, T.M. 2008. Partnering to beckon them home: Public-Sector Innovation for Diaspora Foreign Investment promotion. Public Administration and Development, 28(1): 54-66.

  73. Riddle, L. 2017. Diaspora engagement and the Sustainable Development Goals. In Appave G. & Sinha, N. (Eds), Migration in the 2030 agenda, 1-22. https://publications.iom.int/books/migration-2030-agenda. Accessed 13 May 2019.

  74. Rufín, C., & Rivera-Santos, M. 2012. Between commonwealth and competition: Understanding the governance of public–private partnerships. Journal of Management 38(5): 1634-1654.

  75. Saxenian, A. 2006. The new argonauts: Regional advantage in a global economy. Cambridge, MA: Harvard University Press.

  76. Tung, R. L., & Chung, H. F. 2010. Diaspora and trade facilitation: The case of ethnic Chinese in Australia. Asia Pacific Journal of Management, 27(3): 371-392.

  77. Vaaler, P. M. 2011. Immigrant remittances and the venture investment environment of developing countries. Journal of International Business Studies, 42(9): 1121-1149.

  78. Vaaler, P. M. 2013. Diaspora concentration and the venture investment impact of remittances. Journal of International Management, 19(1): 26-46.

  79. WAIPA. 2018. Members list. http://www.waipa.org/members-list/. Accessed 13 May 2019.

  80. Walsh, K. 1995. Public services and market mechanism – Competition, contracting and the new public management. Basingstoke: Macmillan.

  81. Wells, L. T., & Wint, A. G. 2000. Marketing a country: Promotion as a tool for attracting foreign investment. Washington, DC: World Bank.

  82. Wilkinson, T. J., & Brouthers, L. E. 2000. An evaluation of state sponsored promotion programs. Journal of Business Research, 47(3): 229-236.

  83. Williamson, O. E. 1985. The economic institutions of capitalism. New York: Free Press.

  84. Yergin, D., & Stanislaw, J. 1998. The commanding heights. The battle between government and the marketplace that is remaking the modern world. New York: Simon & Schuster.

  85. Yin, R. K. 2012. Case study research and applications: Design and methods. Thousand Oaks, CA: Sage.

Download references

Acknowledgements

We thank Joanna Murphy and our expert informants for their cooperation and support on this project. We indebted to the editorial guidance of Paul Vaaler and two anonymous reviewers for their feedback and recommendations. This research has also benefitted from helpful comments by conference attendees at the Academy of International Business and the International Association for Business and Society. All errors are ours.

Author information

Correspondence to Michael E. Cummings.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Accepted by Paul Vaaler, Area Editor, 9 October 2019. This article has been with the authors for two revisions

Appendix: Selected ConnectIreland Jobs Announcements, 2012–2016

Appendix: Selected ConnectIreland Jobs Announcements, 2012–2016

Announcement date Company Sector/industry Location Number of jobs
2012
 1 June Intergeo Environmental contracting Carlow 30
2013
 27 May Mafic Production of basalt fibre Meath 70
 19 July Magni Automotive coating business Cork 50
 19 July Flagship Consultancy and recruitment services for maritime companies Galway 15
 19 July Ark Consulting services in ETRM (Energy Trading Risk Management) sector Longford 10
 4 October Sound and Sea Ocean and marine engineering services Cork 55
  IA Innovation European Corporate Training entity of Improv Asylum Dublin 12
  SMI Technology consulting and government relations Dublin 10
  Bayne Law Group Legal consultancy Cork 6
2014
 19 November SWG and MDS Technology and technical support Kells, Meath 50
 3 December Clearplas and Plastics reprocessing Meath 19
  Eyefinity Medical records software for The optical industry Dublin 20
 11 December 1E IT efficiency software Dublin 40
2015
 30 March Deko foods Ethnic foods manufacturer Meath 20
 8 April SMK Electro-mechanical component manufacturer Dublin 11
 5 May Spiruline Health food manufacturer and distributor Dublin 13
 15 June DataClarity Business analytics software, consulting, and education services Dublin 30
 16 June UCT Chromatography Wexford 17
 1 July Absorb Technology (Blatant Media) Software platform for training courses Dublin 12
 2 July ProSeeder Customizable financial technology platform for investment firms Dublin 17
 20 August 6D Global Digital business solutions (marketing and technology) Dublin 60
 7 September CipherTechs Security solutions for businesses Kilkenny 36
 6 October CGM Software development Waterford 10
 20 November Chameleon Technology/ native advertising platform Dublin 21
2016
 9 March Cargurus Shopping site Dublin 100
 19 May Castle Craig Residential rehabilitation hospital Ardee, County Louth 48
 22 September Yroo Search engine for smart shoppers Dublin 33
 27 September eCOMM Banking and financial technology Navan 30

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Poliakova, E., Riddle, L. & Cummings, M.E. Diaspora investment promotion via public–private partnerships: Case-study insights and IB research implications from the Succeed in Ireland initiative. J Int Bus Policy 3, 23–37 (2020). https://doi.org/10.1057/s42214-019-00044-7

Download citation

Keywords

  • migrants
  • foreign direct investment
  • investment-promotion agencies
  • principal-agent theory
  • public–private partnerships
  • case study