1GBCA: Ireland

Global Business Cultural Analysis: Ireland

Cameron S. Burgamy

Liberty University

2GBCA: Ireland

Abstract

The purpose of this paper is to summarize all of the major cultural traits of Ireland,

including, but not limited to, communication, religion, ethics, customs, education, and values,

and analyze how each of these topics effects Irish nationals conducting business domestically

and internationally. Additionally, a comparison is drawn between culture and business in Ireland

and the United States. Finally, a Hofstede analysis, SWOT analysis, and FDI analysis are each

evaluated to determine the implications of Irish culture and business on an American wishing to

conduct business in Ireland.

3GBCA: Ireland

Global Business Cultural Analysis: Ireland

Introduction

Ireland is home to one of the most unique and storied cultures in the world. Due to relative

isolation off the northwestern coast of Europe, the “Emerald Isle” has not only thrived culturally,

but has maintained distinctiveness with little influence (despite numerous invasions) from the

rest of the world. Today, unlike most of the rest of the developed world, Ireland revolves around

a slow pace of life, quality investment in individuals and relationships, and a thriving pub

culture. Despite its reserved surface, however, Ireland has developed one of the world’s

strongest and fastest developing economies. Known as the “Celtic Tiger”, the Irish economy

began to industrialize in the 1950s, with major economic boons beginning in the 1980s and

1990s. Strong emphasis on foreign direct investment (FDI) established a high-quality industrial

sector, which in turn launched Ireland into various global markets, including joining the

European Union (EU) in 1973, that stimulated its economic growth exponentially. Ireland also

has a prosperous relationship with the United States; a vast majority of Ireland’s foreign direct

investment comes from American firms. In this report, the following topics will be discussed: 1)

major Irish cultural factors, including communication, religion, ethics, values and attitudes,

manners, customs, social structures and organizations, and education, 2) the effect of those

factors on domestic and international business, 3) a comparison and contrast of cultural factors

between Ireland and the United States, and 4) building a proper perspective for the business

person from the United States working in Ireland.

4GBCA: Ireland

1. What are the major elements and dimensions of culture in this region?

Communication

Communication is the most crucial aspect of doing business internationally. Even the

best business mind will be rendered completely useless, even detrimental, in the global business

realm if he or she does not know how to properly communicate with colleagues of other nations,

cultures, and languages. Subtleties of communication are important even within the United

States, as various regions are becoming increasingly diverse and creating their own unique

subcultures. In this section, the intricacies of verbal and non-verbal communication in Ireland

are discussed.

Verbal. According to section 8 of the Irish Constitution, the first national language of

the Republic of Ireland is Irish, followed by English as the second (Ceallaigh, 2015, p. 180). It is

mandated that Irish be taught in all public schools, but it is not widely spoken outside of

academia. As of the 2011 census, approximately 1.77 million people in Ireland spoke Irish, and

only 77,185 speak it as their primary language (Ceallaigh, 2015, p. 180). English is by far

Ireland’s most commonly used language in most facets of life. It would be uncommon to hear

Irish spoke anywhere in public, and is typically only used within the confines of more rural and

traditional homes in the west and north.

The Celtic Revival, which will be discussed further in later sections, saw a desire to

invigorate the use of Irish beyond the primary and secondary school classroom. The revival was

Ireland’s effort to traditionalize and connect with its ancestral Celtic culture. As the Irish

language is completely unique to Ireland, it is only natural that a primary emphasis of the revival

era was to ignite a more widespread use of it. While English is almost certain to remain the

5GBCA: Ireland

dominant language of business and government, the use of Irish has regained some prominence

socially and in education (Ceallaigh, 2015, p. 185).

Nonverbal. The Irish value and expect a firm handshake and eye contact with everyone

they meet, including men, women, and children, but they are not otherwise overly physical in

their communication (eDiplomat, 2016). They are not loud, aggressive, or pretentious, and

dislike those who are. Such behavior, therefore, is very ineffective in any sort of

communication. Because they value close relationships and community, arrogance is highly

rejected. Sincerity, therefore, is the key to proper communication, either verbal or nonverbal, in

Ireland. In other words, Ireland is a very low-context society; what is said is not nearly as

important as how it is said and with what implications.

Religion

Religion has been intrinsically woven into the fabric of Ireland since the beginning of the

free Irish state. The constitution of the Republic of Ireland, adopted in 1937, guarantees the

freedom of religion for all. It was written on the foundation of Christianity, and Christian

(particularly Catholic) doctrine and ethics are implicit and explicit throughout the document

(Hannon, 2009, p. 258). Although Christians make up the overwhelming majority of the Irish

nation, an increasingly pluralistic society has created some opposition to this fact (Hannon, 2009,

p. 258). Today Ireland is predominantly Roman Catholic (84.7%), followed by Atheist (5.7%),

the Church of Ireland (2.7%), miscellaneous other Christian denominations (2.7%), and Muslim

(1.1%), with the remaining population (3.2%) identifying as either “other” or “unspecified”

(Central Intelligence Agency, 2016).

6GBCA: Ireland

As with its constitution, Ireland’s culture was almost completely inseparable from

Catholic tradition until the 1990s, and, although other worldviews have become to permeate the

culture, Christian ties still remain strong to the present. Irish leadership, upon the establishment

of the Irish Free State, went so far as to write the Pope in Rome to declare “a desire to… strive

for the attainment of a social order in Ireland based on Christian principles” (Scanlan, 2006, p.

34). When the aforementioned pluralistic attitude began to appear around the turn of the 21st

century, Catholicism’s effect on daily life became much more subtle. In contrast to traditional

Irish culture, public displays of religion today “can be seen as a form of symbolic domination”

(Cleary and Connolly, 2005, p. 61). Catholic signs and symbols are still very common in

Ireland, though, and are seen by most to drive a further wedge between the Catholic majority and

Protestant minority.

Saint Patrick. A central figure in Irish religion and culture is Saint Patrick. One of

Ireland’s patron saints, Patrick was a Romano-British Christian who brought Christianity to the

island for the first time in the fifth century CE (Foster, 1989, p.9). Despite having been

originally brought there as a slave, his love for Ireland and its people led to the widespread of

Christianity that is seen today. Not only is Patrick one of the most prominent historical figures in

Christian and Irish history, but he has come to be intrinsically associated with Irish identity.

According to Butler (2012):

St. Patrick features in many stories in the Irish oral tradition.

These stories have been given new layers of meaning over time

while also becoming tied to Irish identity both in Ireland and

abroad. The symbolic resonance of the St. Patrick figure is

complex, stretching from that of Christianity’s arrival in Ireland to

7GBCA: Ireland

an identity that encompasses everything Irish. In some portrayals,

the saint is symbolically synonymous with the Christian religion

itself. Later, the saint becomes associated with Catholic Ireland

and is almost synonymous with Irish national identity (p. 84).

The date of his death, March 17th, is a national holiday and one of the largest celebrations

of the year. It also celebrated around the world, and has particular resonance with the Irish-

American community in the United States, giving credence to Patrick’s enormous influence on

Irish culture.

Ethics

Satterlee (2014) defines ethics as “the discipline dealing with what is good and bad and

with moral duty and obligation” (p. 52). Business ethics can essentially be described as the

above definition through the lens of decision making in the world of business, but should never

be given a separate set of standards. As mandated in 1 Corinthians 10:31, every decision made

in the business realm should adhere strictly to the same ethical standards as in any other facet of

life. Although a rift between church and state has begun over the past two decades, traditional

religious ethics are still synonymous with most every aspect of life in Ireland.

Crime. An important ethical component when conducting business in a foreign country

is that country’s crime rate. Attitudes of the Irish people towards crime have changed

dramatically over the course of history. Up until the early 1980s, crime was widely accepted as a

product of social circumstances; for example, otherwise moral people would steal food because

they had no other way to feed themselves or their families. Since that time, however, there has

been an increasing stigma of evil attached not only to crime itself, but also to individual

8GBCA: Ireland

criminals. This is in part a result of a steady increase in crime rates beginning in the 1940s and

peaking during the period from 2005-2011(McCullagh, 2014, p. 9). During that span,

kidnapping, aggravated offenses, and drug trafficking all increased between 33% and 40%

(Central Statistics Office, 2011, p. 15). The number of murders increased to an alarming 84 in

2007, but decreased dramatically to only 44 in 2011 (Central Statistics Office, 2011, p.15).

McCullagh (2014) states that another reason for the inflation of crime is that “by basing its

responses on particular perceptions of what the drug problem might be, it played a part in

creating the problem it was designed to solve” (McCullagh, p. 19). The government

implemented weak punishments for a drug use problem that was not extreme, which effectively

created repeat offenders, false social hype, and inflated the situation to a legitimate problem.

Ireland’s economic growth peaked during this period, making it an attractive nation for

multinational corporations and foreign direct investment, but the savvy international business

person should be aware of the corresponding crime increases as well.

Values and Attitudes

Irish values and attitudes, and indeed its culture as a whole, stem from an intense loyalty

to its ancient Celtic roots that, largely due to its isolated geographic location, has remained

consistent throughout its history. Leading into the modern era, an attitude of national pride and a

desire to rekindle traditional Celtic culture has been prevalent since the late eighteenth century,

reaching its peak during a period known as the “Celtic Revival” at the turn of the twentieth

century (Cleary and Connolly, 2006, p. 157). This revival was due in large part to a general

aversion of the industrial revolution by the Irish people. Because Ireland spent centuries as a

colonial nation under Anglo-Saxon oppression, they associated the industrial revolution, which

occurred for the rest of the developed world during the waning days of the colonial period (19th

9GBCA: Ireland

and early 20th centuries) with “foreignness, domination, and violence” (Cleary and Connolly,

2006, p. 160). When this period ended with Irish independence in 1921, the Celtic Revival

reached its peak. Modernism and industry, therefore, were abandoned in an attempt to reconnect

Ireland with its past, effectively causing Ireland to “skip” postmodernism as it pursued the

opposite (Cleary and Connolly, 2006, p. 168).

Manners

The Irish are mostly informal, but appreciate good manners as they relate to creating a

warm and relaxing environment. As stated above, they respect a hand shake upon initial

greeting, but as a way to be inviting rather than as a formality. The Irish are a subtle people, and

consider loud or abrasive behavior to be rude (eDiplomat, 2016). Business and social dinners are

common, and it is considered rude to refuse any food or drink offered to you, particularly when

in the home (eDiplomat, 2016). To rush the Irish is to insult the Irish. In any setting, whether it

be casual or business, it is always prudent to allow for extra time. Conversations and meetings

will often draw on beyond the scheduled time, and it would be taken as rude to cut either short

for the sake of time.

Customs

According to Scanlan (2006), “Nothing reveals the Irish character better than the simple

pleasures of daily life” (p. 89). There are a few specific elements that comprise traditional Irish

custom and are the foundation of Ireland’s value system, including music, agriculture, folklore,

literature, the use of the Irish language in both literature and everyday life, religion, and a

thriving pub culture that centers on modern versions of traditional Irish cuisine and beer. The

unifying theme in these areas, and the underlying facet of Irish custom that is derived from them,

10GBCA: Ireland

is an emphasis on a slow pace of life, relaxation, low stress, a close knit community, and quality

time spent with others.

The Irish are never to be rushed, and prioritize relationship building and conversations

(eDiplomat, 2016). While “People in other cultures may drink at home, or with meals…the Irish

meet their friends at the local pub” (Scanlan, 2006, p. 99); social life revolves around local pubs

Social Structures and Organizations

Unlike other countries, Ireland does not possess a multi-tiered class system, but is

typically more polarized with a favored upper class and an oppressed lower class. The Irish

social structure was crafted almost exclusively by religion, but has also been strongly influenced

by industrialization and language.

Although Ireland has been historically Catholic since the fifth century AD due to the

work of Saint Patrick, Protestantism took a strong foothold during the years of British rule. After

the establishment of the Irish Free State in 1921, the Celtic revival brought with it the

reestablishment of Catholicism as a major catalyst in the Irish identity. Protestantism was

associated with oppressive British rule, and a polarized social structure that oppressed Protestant

Christians was created as a result. Although the Irish constitution grants freedom of religion,

religion-based discrimination is common. That discrimination has started to lift a great deal

since the 1990s, but a strong stigma of oppression remains.

During their rule of Ireland, the British remained primarily on the eastern shore of the

island. The west continued mostly unaltered by their influence, and became to some a more

“back-woods” sector of the nation even in modern times. Once Ireland began to industrialize in

the 1970s and 80s, the social and economic rift between east and west grew wider. British

11GBCA: Ireland

infrastructure, investment, and cultural shifts in the east allowed that part of the nation to develop

and industrialize much faster; the west remained decades if not centuries behind as it clung to

agriculture and a more traditional Celtic lifestyle. This created a stark socio-economic class

structure difference between the two regions.

Finally, the use of the Irish language contributed to the polarization of Irish class

structure. The Anglo-Irish culture established during British rule all but eliminataead the use of

the Irish language from common practice in the east in favor of English (Riagian, 2008, p. 371).

In the more traditional west, however, it thrived. During the industrial revolution, and due to the

needed use of English to interact with newly forming global markets, English continued

dominated in the east. The Irish language came to be associated with lower class, and the social

status of the traditional west was driven even farther down (Riagian, 2008, p. 371).

Education

Ireland’s education system currently ranks 31st in the world, and education expenditures

comprise 5.8% of the nation’s total gross domestic product (GDP) (Central Intelligence Agency,

2016). Ireland’s education system is 4-tiered: primary, secondary, post-secondary, and post-

graduate or “higher” (Barry, 2014, p.217). Detailed curriculum is cooperatively developed by

the Minister for Education and Science and the Irish National Council for Curriculum and

Assessment (NCCA) (National Council for Curriculum and Assessment, 2016).

The Irish education system and its specific functions evolved directly as a result of the

1962 publication Investment in Education. According to Barry (2014), the report “coincided

with an economic reorientation away from trade protection and towards export markets” (p.

214). An additional focus of the report that impacts education is that, rather than identify how an

12GBCA: Ireland

education system can impact an economy, Investment in Education studied the reverse. Major

economic changes allowed for more efficient government investment in education, and “by the

turn of the millennium the types of problems identified by Investment in Education seemed to

have been consigned to the past” (Barry, 2014, p. 218).

Pre-school and primary education. Irish education begins with a focused early

childhood curriculum, developed in 2009 by the NCCA, which is designed for use in the home,

formal and informal child care services, and preschools (National Council for Curriculum and

Assessment, 2016). This curriculum, titled Aistear: the Early Childhood Curriculum

Framework, develops a strong foundation for the primary education curriculum, which is titled

Primary School Education. Primary education is the first stage of compulsory (required by law)

education in Ireland. Most students complete primary education around the age of 11. The

current primary school education curriculum was developed in 1999 by the NCAA and covers

the following major topics: Language, specifically English and Gaeilge (Irish); mathematics;

physical education; the arts, including visual arts, music, and drama; history; geography; natural

science; and social, personal, and health education (National Council for Curriculum and

Assessment, 2016). Although Irish, as stated above, is rarely used outside of the primary and

secondary school classroom, it is standard requirement for all Irish public school students.

Secondary education. Secondary education is the latter portion of compulsory education

in Ireland. Also known as post-primary education, secondary education is broken into two

phases: the junior cycle and the senior cycle (National Council for Curriculum and Assessment,

2016). The junior cycle is comprised of standard education requirements and is essemtially an

extension of primary education. The senior cycle, which typically sees students from ages 15 to

13GBCA: Ireland

18, allows for a selection from a variety of different curriculums that are more customized to

meet individual wants and needs (National Council for Curriculum and Assessment, 2016).

Post-secondary education. Since the 1960s, higher education has played a pivotal role

in Ireland’s economic reform. The higher education system is a major avenue for the human

capital theory, and this theory played a key role in the development of Ireland’s economy and

education system. According to Walsh and Loxley (2014), “Human capital theory, which held

that investment in people/human resources produced an even greater return of investment than

investment in physical capital, emerged as a major strand of economic thinking in the early

1960s and was eagerly embraced by Irish political elites” (p. 1130). This theory is further

explored in Investment in Education, which emphasized that bolstering Ireland’s economy would

require: 1) the production of highly skilled workers, and 2) a greater and more deliberate

investment in the education system (Walsh and Loxley, 2014, p. 1130).

Due to these reforms, Ireland today boasts an impressive higher education system. There

are nine nationally recognized institutions in Ireland that award degrees at all academic levels,

including University of Dublin, National University of Ireland, Dublin Institute of Technology,

Royal College of Surgeons in Ireland, Dublin City University, Maynooth, Higher Education and

Training Awards Council, St. Patrick’s College, and University of Limerick.

2. How are these elements and dimensions integrated by locals conducting business

in the nation?

Communication

Communication is crucial to a business interaction in any nation, and especially so in

Ireland. Because the Irish value sincere relationships very highly, beginning and maintaining a

14GBCA: Ireland

business interaction or long-term relationship with genuine and warm greetings is crucial.

Although the Irish use a very unique form of English that has been effected by the Irish

language, speech is typically a bit more conventional (as spoken in England and the United

States, particularly) in the business setting due to a vast majority of Irish global business ventures

being conducted with England and the United States (Ceallaigh and Dhonnabhain, 2015, p. 180).

Religion and Ethics

Irish business ethics (and ethics in general) are predominantly sourced from the nation’s

deep Catholic roots. As Irish politics has become increasingly pluralistic, the business world still

has a strong pull towards religion-based ethics. Ethical management is of a particular

importance. According to one study, Irish managers prioritizes each of the following: 1) Ethics

in all industries and services, 2) educating the public of business practices, 3) selecting managers

based on ethical convictions, 4) developing a clear and concise code of ethics to be strictly

enforced uniformly throughout an organization, and 5) business schools are not adequately

training managers in proper ethics (Alderson, 1994, p. 434).

Business Structure

Ireland’s social attitudes of equality are present in the corporate world. The polarity of

upper and lower class is less observed in business, however, because those considered lower

class are typically either small farmers or unemployed. Business management hierarchies are in

place strictly for convenience, communication, and efficiency (more will be discussed on this

subject later in the Hofstede Analysis). Managers are hired or promoted typically due to tenure

with the company, superior leadership skills, superior knowledge of the industry, or a

combination of all three factors, but are not necessarily seen by society as more valuable or

15GBCA: Ireland

important on a personal level. Employees on all levels are often on a first name-basis, invited to

business meetings and dinners, and are involved in the decision making process at least to some

extent.

Transparency. One global business trend that has been particularly focused in Ireland is

transparency of corporate and management operations. According to O’Dwyer, Unerman, and

Bradley (2005), the development of “corporate social disclosure” is sorely reliant on not only

transparency from executives and management, but also on input from non-managerial

stakeholders (p. 15). The purpose and benefit, which has been documented to show great

success in overall performance, is to ensure that every stakeholder has an equal opportunity to be

a part of (or at minimum be aware of) all aspects of the business and decision making (O’Dwyer

et al, 2005, p. 16).

Manners and Customs

As Ireland places an emphasis on sincerity and relationships, business ventures are typically

commenced through third-parties (eDiplomat, 2016). As stated above, a firm handshake with

eye contact is expected for any meeting with the Irish, and that is especially true in the business

world; first impressions are crucial to a success business venture or on-going relationship. Gift-

giving is not common. If a gift is given, it should be small, and done at the end of a meeting, not

before (eDiplomat, 2016).

Business meetings. Conversations and business meetings tend to be relaxed and have a

loose time structure. Punctuality is not of high importance, and meetings, either formal or

casual, often tarry longer than scheduled. Pubs, homes, and the golf course are common places

for business meetings to occur, even for formal meetings. (eDiplomat, 2016).

16GBCA: Ireland

3. How do both of the above items compare with United States culture and

business?

Ireland and the United States are alike in their backgrounds and influences, and as a result are

very similar culturally. In fact, the relatively new culture of the United States has incredible

influence from Irish-Americans who immigrated by the millions in the 19th and 20th centuries.

This has created an international Irish culture that has remained surprisingly true to its Celtic

roots, which is of crucial importance to the Irish. These similarities also become manifest in the

business realm. Both are developed nations with strong economies that play major roles in the

global economy. Both rely heavily on industry, and are leading nations in many industries

around the world. The following sections will discuss the similarities and differences of many of

the aspects of culture from section one between Ireland and the United States.

Communication in the United States

Verbal. The United States is among the most culturally and linguistically diverse nations

in the world. According to the Central Intelligence Agency’s Word Factbook, the ratio of

languages primarily spoken in the United States is 79.2% English, 12.9% Spanish, 3.8% other

Indo-European, 3.3% Asian languages, and .9% other (Central Intelligence Agency, 2016).

English is by far the most dominant language in the United States, and is used almost exclusively

throughout all aspects of business, education, government, and culture.

Basic to advanced English is a standard requirement of all state-sponsored primary,

secondary, and higher education schools in the United States. Students at all levels are also often

able to select a foreign language to study. The most common options are Spanish and French,

17GBCA: Ireland

although other major world languages, such as German, Mandarin Chinese, Arabic, Japanese,

Latin, Greek, Portuguese, Italian, and Russian, are popular options.

Nonverbal. The United States is a low-context society by necessity. Because of its

conglomeration of cultures and languages, there are very few gestures and body languages that

can be universally understood across the nation. While there are pockets of culture that may

have motions and gestures that are understood in that area (the United States is full of areas of

sub culture that are larger than many other nations), very few things are uniform across the

country. For that reason, explicates in verbal communication are very important, particularly in

the business world.

Comparison with Ireland. Loud, aggressive, or pretentious behavior is frowned upon in

Ireland. While is not such a universal stigma in American culture, the same sentiments do exist

in American business culture. Communication and business meetings are generally not as slow-

paced in the United States as in Ireland; the faster and more efficient a meeting or a transaction

can be conducted, the better. Formal Irish business meetings commonly occur in homes and

pubs; while some more casual business meetings in the United States do take place in restaurants

and other similar places, most formal meetings occur in the office.

Unlike Ireland, the United States has no official language (Shearer, 2008, p. 31). While

English is the most commonly spoken language and the language of most historic use dating

back to the oldest colonies, Americans do not have the same sense of national pride and identity

associated with their native tongue as do the Irish. One of the primary reasons being that Irish is

unique to Ireland, but English is one of the most widely spoken languages around the world and

has no real unique ties to the United States.

18GBCA: Ireland

Religion and Ethics Comparison

The United States is historically a Christian nation, as is Ireland. One of the primary

motivations for the initial wave of European immigration to the New World was the opportunity

of religious freedom, and that opportunity is still a fundamental aspect of American culture. The

First Amendment to the United States Constitution guarantees the freedom of and from religion

for all citizens. Although both the United States and Ireland are majority Christian (78.5% and

90.1%, respectively), national sentiments towards religion as a whole are much different. The

official state religion of Ireland is the Roman Catholic Church. The Congress of the United

States, however, is prohibited from declaring an official state religion as part of the intrinsic

freedom of religion that the country was founded on (Shearer, 2008, p. 69).

Business ethics in both nations are grounded in their religious beliefs and backgrounds.

Managers in the United States have many of the same sentiments as Irish managers as listed in

section two, including uniform corporate ethics and ethical education. In fact, those religious

convictions permeate many aspects of American culture, including politics, domestic business,

and global business. According to Shearer (2008),

There is no law that creates a wall of separation between personal

religious thought and public action. Americans by and large

believe that God is leading the United States, imbuing it with

democratic values and the wealth and beauty of its natural

environment, and that America has, therefore, the obligation to

bring God’s democratic and Christian values to the world (p. 70-

71).

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A solid ethical platform, grounded in Christianity, is a crucial aspect of business in both

the United States and Ireland.

Values and Attitudes in the United States

The United States was founded on the principles of freedom, liberty, and opportunity.

Most American values and attitudes, for good or for bad, center on these principles. The

Constitution guarantees the right to freedom of speech and religion. Capitalism and democracy

have created a nation in which every person has the opportunity to advance themselves

economically and exercise their power as citizens. These ideas are key components of the

“American Dream”, which is an ideal that in the United States, you can be or do anything with

enough hard work. According to Shearer (2008), “Most Americans believe that hard work,

whether backbreaking physical labor or long hours at the office is the path to the American

dream” (p. 30).

Comparison. Ireland differs from the United States in that it seeks to implement its

traditional cultural roots into everyday life. This led to a long-standing delay for

industrialization in Ireland, a phenomena that the United States had led since the late-19th

century. The United States is driven forward to the future by industry, technology, and

advancement of life in general. While Ireland has industrialized and become a player in world

economies since the 1980s, the primary focus of its values and attitudes is still a slow pace of life

and Celtic tradition.

Hofstede Analysis

Geert Hofstede was a prominent figure in the fields of anthropology and psychology in

the mid-twentieth century. Hofstede’s work is crucial to the modern understanding of the

20GBCA: Ireland

relationship between cultural analysis and business management. By studying the multinational

corporation IBM in over 120 countries, Hofstede compared and contrasted the cultures of

national identity and corporate identity (Satterlee, 2014, p. 58). The following sections are an

analysis of both Ireland and the United States using the Hofstede Analysis in the areas of power

distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and

indulgence versus restraint.

Power Distance. Satterlee (2014) defines power distance as “the extent to which less

powerful members of organizations within a country expect and accept how power is distributed

throughout the organization” (p. 59). Power distance in the United States and Ireland are very

similar. Both countries have a relatively low power distance score (40 and 28, respectively),

and, according to ITIM International (2016), “hierarchy is established for convenience, superiors

are accessible, and managers rely on individual employees and teams for their expertise” (ITIM

International). What this means is that classes and levels of management are present, but only as

a way to establish proper chain of command and communication for the sake of efficient

operations. Managers are not seen as superior people as would be the case in a country with a

high power distance score.

Individualism. Ireland (70) and the United States (91) both have very high

individualism scores according to ITIM International (2016), with the latter having one of the

highest in the world. While communication, group projects, and social events are all very

important in both nations, the bottom-line reality, particularly in business, is that the individual is

ultimately responsible for his or her own needs and self-advancement. Promotions and

recognition are given based on individual merit, work ethic, and documented achievements.

21GBCA: Ireland

Masculinity. A score on this scale determines what drives a society. A low (feminine)

score signifies a society that pursues happiness more so than success; a high (masculine) score

signifies the opposite. Both Ireland (68) and the United States (62) have higher than average

masculinity scores (ITIM International, 2016). According to ITIM International (2016),

“Behavior in school, work, and play are based on the shared values that people should ‘strive to

be the best they can be’ and that ‘the winner takes all’”. Success, achievement, advancement,

and recognition are all highly valued. Additionally, considering that both nations have high

scores in individualism, it can be concluded that self-esteem and pride are also significant factors

in both societies.

Uncertainty Avoidance. Ireland (35) and the United States (46) score below average in

this area, meaning that both nations are open to new ideas, practices, and creativity (ITIM

International, 2016). Both nations are very tolerant and pluralistic, giving rights and freedom to

those of all cultures, nations, and backgrounds to express their ideas. In Ireland, practical

solutions that get the job done are more valuable than strictly adhering to predetermined

guidelines (within ethical reason). The United States’ score was once closer to that of Ireland,

but it has slowly risen since the terrorist attacks of September 11th, 2001. Therefore, while new

ideas, innovation, and creativity are valued and often encouraged, there has been an increasing

level of required adherence to policies and procedures, specifically as they pertain to security,

which has stifled some of that ingenuity (ITIM International, 2016).

Long-term Orientation. Ireland (24) and the United States (26) have almost identical

scores for long-term orientation. ITIM International (2016) defines both nations as normative,

meaning that customs and traditions are highly valued, a standard of truth is essential, and

societal change is given suspicion until it can be time-tested and proven to be correct and

22GBCA: Ireland

valuable. Americans and the Irish will typically pursue instant gratification rather than future

security, and results are more important than investment.

Indulgence vs. Restraint. Satterlee (2014) defines restraint as control over one’s life (p.

61). Ireland (65) and the United States (68) remain extremely similar in this area (p. 61). These

very high scores classify both nations as very indulgent societies. Leisure time is highly valued

in both nations. Due to the combined classifications of indulgent, individualistic, and normative,

ITIM International (2016) states that both Ireland and the United States “do what they want,

when they want”.

4. What are the implications of United States businesses that wish to conduct

business in Ireland?

Foreign direct investment and trade with the United States is a crucial factor in Ireland’s

economic success. According to the American Chamber of Commerce (2016), over 700 US

companies in Ireland employ over 130,000 Irish nationals, adding nearly 80 billion USD to

Ireland’s total exports. This influx of capital and resources has given Ireland the ability to

compete in many world markets, and as a result it has become one of the top imports and

exporters in the European Union. It is important, therefore, for the international American

businessman who wishes to operate in or with Ireland to understand Ireland’s most important

industries and how they operate. Luckily, American and Irish businesses enjoy the ease of very

similar cultures, so the learning curve is not very steep. The following sections include further

details regarding Irish foreign direct investment (FDI) and a SWOT analysis of two of Ireland’s

top industries: the alcoholic beverage industry, and the information and telecommunications

(ICT) industry.

23GBCA: Ireland

Foreign Direct Investment

In an effort to protect and maintain its independence, both culturally and politically, “in

its early years Ireland was very much an inwardly focused economy, with industrial policy

concentrating on the imposition of trade barriers and the preservation of indigenous ownership of

industry” (Gunnigle et al, 2002, p. 657-658). Beginning in the 1950s, however, the Irish

economy took an outward turn, and foreign direct investment played a major role in the

economic overhaul that ultimately led to the Irish economic boon of the 1980s and 90s. Foreign

direct investment is defined as the inflow of resources, including financial capital, materials,

services, human resources, and the purchasing of property from one country into the host country

for the purposes of conducting business internationally. Foreign investment in Ireland’s

economy was stimulated and encouraged by tax breaks, subsidies, and grants, particularly for

firms from the United States. In fact, from 1998 until 2009, Ireland’s outward international

investment stock was almost identical to its inward investment stock, with both approaching €2.5

million. Because FDI allows the host country to “exploit its comparative advantages more

efficiently… FDI is trade enhancing, in that FDI will enhance production and export capacity”

(Buckley and Ruame, 2006, p. 1612). In other words, foreign direct investment allows a nation

to invest most of its focus in the aspects of industry that it is well suited for and allow its

weaknesses to be met by capital and resources from other countries operating within its borders.

This system has proven especially useful for Ireland due to its remote location and significant

lack of natural resources. Ireland therefore has invested most of its efforts into service and

technology industries, and has in fact become a world leader in the quality of service provided

for pharmaceuticals, medical supplies, alcoholic beverages, engineering, and

telecommunications, two of which will be discussed in further detail in the following section

24GBCA: Ireland

(Industrial Development Authority Ireland, 2016). This fact, along with Ireland joining the

European Union (EU) in 1973, gave Ireland the resources it needed to enter world economic and

trade markets. According to Gunnigle, Heraty, and Morley (2002), “there are now over 1,225

overseas manufacturing and internationally traded services companies operating in Ireland,

employing approximately 137,000 people, with a particular focus on electronics,

pharmaceuticals, software, and teleservices” (p. 658). About one-third of the industrial

workforce in Ireland is employed by a multinational corporation, which accounts for a majority

of the nation’s industrial exports at roughly 70% (Gunnigle, et al, 2002, p. 658).

SWOT Analysis

The SWOT (strengths, weaknesses, opportunities, and threats) analysis is an important

self-examination tool used by businesses of all sizes and at all levels to identify key strengths and

areas of improvement. The following tables and analysis are a SWOT analysis for two of

Ireland’s largest industries and contributors to the nation’s total gross domestic product (GDP):

alcoholic beverages (brewing and distributing) and information and communications technology

(ICT).

Alcoholic Beverage Industry. Alcohol is a significant aspect of culture and business in

Ireland. Most social life in Ireland centers are alcohol, either in the pub or the home, and

business meetings are commonly held in pubs and restaurants. At 10.7 liters per adult (LPA),

Ireland is one of the world’s largest consumers of alcohol per capita (Alcohol Beverage Industry

of Ireland, 2016). The alcoholic beverage industry, therefore, is a major component of the Irish

economy. In 2013, alcohol exports totaled over €1 billion. Ireland exports 150% of the volume

of beverages that it imports annually, and a majority of the alcohol consumed is produced

domestically, including 67% of beer, 42% of spirits, and 86% of cider (Alcohol Beverage

25GBCA: Ireland

Industry of Ireland). The industry also invests heavily into the agricultural industry by using

46,000 tons of apples, 160,000 tons of barley, and 300 million liters of milk annually (Alcohol

Beverage Industry of Ireland).

Weaknesses. One of the weaknesses of the alcoholic beverage industry in Ireland that

has ironically become associated with Irish culture and identity is over consumption. Ireland has

one of the highest per capita consumption rates of alcohol at 10.7 liters per adult (LPA). This

indulgence has become a social and ethical dilemma that has brought about huge efforts on the

part of the national government to combat. These efforts, however, have taken on such volume

as to put a noticeable strain on Ireland’s national economy. (Alcohol Beverage Industry of

Ireland, 2016).

Strengths Weaknesses

Employs approximately 92,000 people 2 billion euro annual industry Highly important cultural factor and influence High quality products by international

standards

Overconsumption- average liters per adult per year is 10.7

Alcohol regulatory actions consume valuable time and resources.

Opportunities Threats

Substantial impact on other important industries, including agriculture and tourism

Alcohol invests directly into local economies through pubs and restaurants.

Major export product

Alcohol taxes in Ireland are among the highest in Europe.

Strict government regulation.

Table 1 Alcoholic Beverage Industry

Information and Communications Technology (ICT) Industry. Since Ireland’s

enormous economic growth in the 1990s, it has attracted large amounts of foreign investment in

the information and communications technology (ICT) industry. According to the Industrial

Development Authority (IDA) of Ireland (2016), “Ireland has become the global technology hub

of choice when it comes to attracting the strategic business activities of ICT companies. This has

earned Ireland the reputation for being the heart of ICT in Europe”. As a result, Ireland has

26GBCA: Ireland

become an ICT powerhouse, and is home to 9 of the world’s top 10 global software companies, 9

of the top 10 US ICT companies, and 4 of the top 5 IT service companies (Industrial

Development Authority, 2016). The ICT industry has served to further stimulate Ireland’s global

involvement by attracting many of the top ICT companies such as Microsoft, Intel, and Google

to establish operations in Ireland.

Weaknesses. The primary weaknesses to the ICT industry in Ireland are a lack of

telecommunications and transportation infrastructure. Because Ireland did not begin to

industrialize until the 1950s, its infrastructure has not developed at a pace equal to its ICT firms.

Major cities, particularly Dublin, therefore, are home to a majority of ICT firms, causing

disproportionate economic growth that has placed a strain on housing and transportation. In

order for Ireland to continue to capitalize on its status as a major ICT nation, it must invest more

heavily in telecoms and transportation (particularly railroad) infrastructure.

Strengths Weaknesses

9 of the top 10 global software companies 9 of the top 10 US ICT Companies 4 of the top 5 IT Services Companies

Remote location ICT and transportation infrastructure

Opportunities Threats

Technology talent from around the world attracted to Ireland.

Huge opportunity for multinational corporations.

Industry growth outpacing city growth and sustainability.

Over reliance on international firms.

Table 2 Information and Communications Technology

Conclusion

Ireland grew to be one of the world’s strongest economies, known as the “Celtic Tiger”,

during the 1980s and 1990s. Despite being struck by the worldwide economic depression of

2008 and 2009, it has recovered quickly and maintained its previous momentum through to the

present. Ireland has initiated difficult but creative economic and management practices to ensure

27GBCA: Ireland

future success in spite of the decline, including strategic lay-offs, reassigning job duties, and

reorganizing shift times (Teague and Roche, 2014, p. 176). Through foreign direct investment,

participation in the European Union, and a strong economic partnership with firms from the

United States, Ireland’s gross domestic product and international trade per capita have continued

to rise. To understand and be successful in the Irish business world, one must be aware of its

unique culture. This report has analyzed how major cultural factors such as religion, education,

customs, values, and language effect the Irish business culture, both for domestics and

internationals. Although similar to the United States in many ways, a slow, intentional, and

sincere approach are distinctive factors to Irish business.

28GBCA: Ireland

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