Yes definitely work exp gives an edge and insight when u do an MBA. I've come across many MBAs who struggle to cope up with the pace in the organisation. They do even poor when it comes to the case of commercials in the organisation. Work experience gives you more logic and insight when u go for study. Bookish knowledge gives only little help when u actually go for work. Also when ur in college, u will study a hell lot of things and you will not be able to concentrate on a particular field. But when u actually have the work ex you will definitely have the direction and focus.
