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Leaving the multinational: the likelihood and nature of employee mobility from MNEs

Andersson, M., Castellani, D. ORCID: https://orcid.org/0000-0002-1823-242X, Fassio, C. and Jienwatcharamongkhol, V. (2022) Leaving the multinational: the likelihood and nature of employee mobility from MNEs. Journal of International Business Studies. ISSN 1478-6990

[img] Text - Accepted Version
· Restricted to Repository staff only until 17 January 2023.

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[img] Text - Accepted Version
· Restricted to Repository staff only until 17 January 2023.

398kB

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1057/s41267-021-00490-7

Abstract/Summary

The mobility of workers from multinational enterprises (MNEs) to other local firms is increasingly recognized as an important externality mechanism. However. MNEs have strong incentives to curb this mobility to prevent leakage of firm-specific assets (FSAs). This research note investigates the likelihood and nature of such mobility patterns. Using longitudinal, matched employer-employee data for Sweden with detailed information on individuals, establishments, and firms, we find that workers employed in MNEs are more likely to leave their employers, compared to similar workers employed in non-MNEs with similar characteristics. This effect is particularly strong for high-wage workers and managers. While we find that workers who leave MNEs are more likely to move to other MNEs, our results identify significant mobility toward start-ups, thus leading to important industrial dynamics in the host country. We discuss the implications of these results for research on the externalities from MNEs, and international business theory.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > International Business and Strategy
ID Code:101525
Publisher:Palgrave Macmillan

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