Multinational Firms’ Motivations and Foreign Direct Investment Decisions: An Analysis of the Software and IT and Financial Services Sectors in the Irish Context |
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Authors: | Fatima Annan‐Diab Fragkiskos Filippaios |
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Affiliation: | 1. Kingston Business School Faculty of Business and Law Kingston University Kingston Hill Kingston Upon Thames Surrey KT2 7LB, United Kingdom;2. Kent Business School University of Kent Parkwood Road Canterbury Kent CT2 7PE, United Kingdom |
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Abstract: | This article focuses on the way greenfield foreign direct investment (FDI) in different sectors is influenced by locational characteristics and explores the role of policy in attracting and retaining foreign investment. We contribute to the literature by empirically investigating the investment motivations of multinational companies in the software and information technology (IT) and financial services sectors in Ireland and those locational factors that contribute to the retention of FDI. The methodology used in this research is of a qualitative nature, and an exploratory deductive approach is adopted in order to gain an understanding of firms’ internationalization decisions and motivations. The data demonstrate that companies in the two sectors follow different investment motivations. Firms in the software and IT sector entered Ireland primarily because of the availability of a high‐quality workforce, whereas firms in the financial services sector entered Ireland following the deregulation of markets and the subsequent ease of doing business. The article builds on these findings to develop policy recommendations. © 2017 Wiley Periodicals, Inc. |
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Keywords: | Multinationals Motivations Foreign Direct Investment Policy Ireland |
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