MNC Subsidiary Closure: What Stays When the MNC Leaves?

Pedro de Faria, Miguel Torres Preto, Wolfgang Sofka

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

    Abstract

    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
    Title of host publicationProceedings of the 55th Annual Meeting of the Academy of International Business
    EditorsPatricia McDougall-Covin, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2013
    Pages120
    Publication statusPublished - 2013
    EventAIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey
    Duration: 3 Jul 20136 Jul 2013
    Conference number: 55
    http://aib.msu.edu/events/2013/

    Conference

    ConferenceAIB 2013 Annual Meeting
    Number55
    LocationSabancı University, Koç University, and Özyeğin University
    CountryTurkey
    CityIstanbul
    Period03/07/201306/07/2013
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume55
    ISSN2078-4430

    Cite this

    de Faria, P., Preto, M. T., & Sofka, W. (2013). MNC Subsidiary Closure: What Stays When the MNC Leaves? In P. McDougall-Covin, & T. Kiyak (Eds.), Proceedings of the 55th Annual Meeting of the Academy of International Business (pp. 120). Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 55 http://aib.msu.edu/events/2013/pdfs/AIB2013_Proceedings.pdf