Hiring Opportunities following MNC Closures: Can Young Firms Attract Former MNC Professionals?

Wolfgang Sofka, Pedro de Faria, Miguel Torres Preto

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Access to skilled human capital is crucial for successful entrepreneurship. We study how the closure of MNC subsidiaries affects the probability with which MNC professionals move to young domestic firms. Under ordinary conditions, young firms are disadvantaged in attracting professionals from MNCs. We reason that MNC subsidiary closures change this calculus. We integrate theoretical mechanisms from international business literature into models from strategic human capital theory explaining matches between particular employees with particular firms. We predict that MNC professionals will be more likely to join young domestic firms following closure. We reason that the effect is stronger for MNC professionals who are predisposed through prior entrepreneurial experience, when the closure affects many employees and few employment opportunities with other MNCs exist. We test and support these hypotheses using a balanced sample of 61,159 MNC professionals. Our findings have relevance for both academic research as well as practice.
Access to skilled human capital is crucial for successful entrepreneurship. We study how the closure of MNC subsidiaries affects the probability with which MNC professionals move to young domestic firms. Under ordinary conditions, young firms are disadvantaged in attracting professionals from MNCs. We reason that MNC subsidiary closures change this calculus. We integrate theoretical mechanisms from international business literature into models from strategic human capital theory explaining matches between particular employees with particular firms. We predict that MNC professionals will be more likely to join young domestic firms following closure. We reason that the effect is stronger for MNC professionals who are predisposed through prior entrepreneurial experience, when the closure affects many employees and few employment opportunities with other MNCs exist. We test and support these hypotheses using a balanced sample of 61,159 MNC professionals. Our findings have relevance for both academic research as well as practice.

Conference

ConferenceDRUID18 Conference
Number40
LocationCopenhagen Business School
CountryDenmark
CityFrederiksberg
Period11/06/201813/06/2018
Internet address

Keywords

  • MNC subsidiaries
  • Closure
  • Strategic human capital
  • Young firms

Cite this

Sofka, W., de Faria, P., & Preto, M. T. (2018). Hiring Opportunities following MNC Closures: Can Young Firms Attract Former MNC Professionals?. Paper presented at DRUID18 Conference, Frederiksberg, Denmark.
Sofka, Wolfgang ; de Faria, Pedro ; Preto, Miguel Torres. / Hiring Opportunities following MNC Closures : Can Young Firms Attract Former MNC Professionals?. Paper presented at DRUID18 Conference, Frederiksberg, Denmark.40 p.
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abstract = "Access to skilled human capital is crucial for successful entrepreneurship. We study how the closure of MNC subsidiaries affects the probability with which MNC professionals move to young domestic firms. Under ordinary conditions, young firms are disadvantaged in attracting professionals from MNCs. We reason that MNC subsidiary closures change this calculus. We integrate theoretical mechanisms from international business literature into models from strategic human capital theory explaining matches between particular employees with particular firms. We predict that MNC professionals will be more likely to join young domestic firms following closure. We reason that the effect is stronger for MNC professionals who are predisposed through prior entrepreneurial experience, when the closure affects many employees and few employment opportunities with other MNCs exist. We test and support these hypotheses using a balanced sample of 61,159 MNC professionals. Our findings have relevance for both academic research as well as practice.",
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Sofka, W, de Faria, P & Preto, MT 2018, 'Hiring Opportunities following MNC Closures: Can Young Firms Attract Former MNC Professionals?' Paper presented at, Frederiksberg, Denmark, 11/06/2018 - 13/06/2018, .

Hiring Opportunities following MNC Closures : Can Young Firms Attract Former MNC Professionals? / Sofka, Wolfgang; de Faria, Pedro; Preto, Miguel Torres.

2018. Paper presented at DRUID18 Conference, Frederiksberg, Denmark.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Hiring Opportunities following MNC Closures

T2 - Can Young Firms Attract Former MNC Professionals?

AU - Sofka,Wolfgang

AU - de Faria,Pedro

AU - Preto,Miguel Torres

PY - 2018

Y1 - 2018

N2 - Access to skilled human capital is crucial for successful entrepreneurship. We study how the closure of MNC subsidiaries affects the probability with which MNC professionals move to young domestic firms. Under ordinary conditions, young firms are disadvantaged in attracting professionals from MNCs. We reason that MNC subsidiary closures change this calculus. We integrate theoretical mechanisms from international business literature into models from strategic human capital theory explaining matches between particular employees with particular firms. We predict that MNC professionals will be more likely to join young domestic firms following closure. We reason that the effect is stronger for MNC professionals who are predisposed through prior entrepreneurial experience, when the closure affects many employees and few employment opportunities with other MNCs exist. We test and support these hypotheses using a balanced sample of 61,159 MNC professionals. Our findings have relevance for both academic research as well as practice.

AB - Access to skilled human capital is crucial for successful entrepreneurship. We study how the closure of MNC subsidiaries affects the probability with which MNC professionals move to young domestic firms. Under ordinary conditions, young firms are disadvantaged in attracting professionals from MNCs. We reason that MNC subsidiary closures change this calculus. We integrate theoretical mechanisms from international business literature into models from strategic human capital theory explaining matches between particular employees with particular firms. We predict that MNC professionals will be more likely to join young domestic firms following closure. We reason that the effect is stronger for MNC professionals who are predisposed through prior entrepreneurial experience, when the closure affects many employees and few employment opportunities with other MNCs exist. We test and support these hypotheses using a balanced sample of 61,159 MNC professionals. Our findings have relevance for both academic research as well as practice.

KW - MNC subsidiaries

KW - Closure

KW - Strategic human capital

KW - Young firms

KW - MNC subsidiaries

KW - Closure

KW - Strategic human capital

KW - Young firms

M3 - Paper

ER -

Sofka W, de Faria P, Preto MT. Hiring Opportunities following MNC Closures: Can Young Firms Attract Former MNC Professionals?. 2018. Paper presented at DRUID18 Conference, Frederiksberg, Denmark.