What question did this study set out to answer?

To develop an empirical framework for quantifying management practices across firms and nations and evaluate how these practices influence firm-level productivity.

November 1, 2007The Quarterly Journal of Economics

Measuring and Explaining Management Practices Across Firms and Countries

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Authors

NBNicholas BloomHunter College JRJohn Van ReenenTexas A&M Health Science Center

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Implication

Cross-sectional survey reveals substantial variations in management practices across firms and countries, suggesting operational quality directly drives cross-country productivity differences.

Key Points

To develop an empirical framework for quantifying management practices across firms and nations and evaluate how these practices influence firm-level productivity.
Utilized an interview-based evaluation tool assessing 18 operational practices across manufacturing firms in the United States, United Kingdom, France, and Germany.
Scored management dimensions spanning shop-floor operations, performance monitoring, target setting, and employee talent incentives.
Management practice scores varied widely across and within nations, with higher scores strongly associated with superior firm productivity, sales growth, and return on capital.
Intense product market competition was associated with significantly higher management scores, while family-owned firms appointing family members as chief executives consistently scored lower.

Cite This Study

Bloom et al. (2007) studied this question.

synapsesocial.com/papers/69da10fc0d540cafc58383b7 https://doi.org/10.1162/qjec.2007.122.4.1351

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Implication

Cross-sectional survey reveals substantial variations in management practices across firms and countries, suggesting operational quality directly drives cross-country productivity differences.

Measuring and Explaining Management Practices Across Firms and Countries

Discussion

Member takes

Implication

Key Points

Cite This Study

Measuring and Explaining Management Practices Across Firms and Countries

Discussion

Member takes

Implication

Key Points

Cite This Study

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