MNC Subsidiary Closure: What Stays When the MNC Leaves?

Pedro de Faria, Wolfgang Sofka, Miguel Torres Preto

    Research output: Contribution to conferencePaperResearchpeer-review


    We investigate the consequences of MNC subsidiary closures for employees who lose their jobs. We ask to what degree the foreign knowledge that they were exposed to is valued in their new job. We argue theoretically that this foreign knowledge is both valuable and not readily available in the host country but is also distant and therefore difficult to absorb. We predict an inverse u-shaped relationship between the exposure to foreign knowledge and the salary in the new job. We empirically support our predictions for a sample of almost 140,000 affected employees in Portugal from 2002 to 2009.
    Original languageEnglish
    Publication dateJun 2013
    Number of pages33
    Publication statusPublished - Jun 2013
    EventThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship: Competitiveness and Dynamics of Organizations, Technologies, Systems and Geography - ESADE Business School, Ramon Llull University, Barcelona, Spain
    Duration: 17 Jun 201319 Jun 2013
    Conference number: 35


    ConferenceThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship
    LocationESADE Business School, Ramon Llull University
    OtherThe DRUID Society Conference 2013
    Internet address

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