Staying Home or Moving Away? Restructuring Efforts within Multinational Enterprises
Abraham, Filip Goesaert, Tim Konings, Jozef
Abraham, Filip
Goesaert, Tim
Konings, Jozef
Citations
Altmetric:
Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2014-06
Journal
World Economy
Book
Publication Volume
37
Publication Issue
6
Publication Begin page
Publication End page
Publication Number of pages
Collections
Abstract
Abstract This paper analyses the impact of geographic dispersion on employment changes within multinationals. Building on earlier work of Landier et al. (2009, Review of Financial Studies 22, 3: 1119), we investigate whether corporate decisionāmaking within a multinational is affected by the distance between an affiliate and its headquarter. Our findings suggest a detrimental impact of distance on employees, by either an increased likelihood of observing a downsizing event, or by witnessing a larger decrease in the number of employees at distant locations during downsizing events. In addition, our results seem to relate the higher likelihood of observing a downsizing event to the role of social factors on decision making. The more visible a manager is in his community, the less likely he is to downsize proximate divisions.
Research Projects
Organizational Units
Journal Issue
Keywords
38 Economics, 3801 Applied Economics, Basic Behavioral and Social Science, Behavioral and Social Science