Other Unpublished Work
Does Management Matter: New Empirics and Old Theories
We collect data on management practices on nearly 6,000 firms in 17 countries in the Americas, Europe, and Asia. We present several "stylized facts" finding support for some basic economic theories of management practices–e.g. the positive size-management quality correlation (Lucas, 1978) and the positive relation between exports and management quality (Melitz, 2003). US firms appear on average to have the highest management scores due to their relative absence of a long tail of very badly managed firms. This appears primarily related to more powerful selection effects in North America as the correlation between both firm size and firm growth with management quality is much stronger there. Using new panel data on changes in management practices over time, we argue that more intense product market competition generates both powerful selection effects and incentivizes incumbent firms to upgrade their management practices.
Keywords: Management Practices and Processes;
Organizational Change and Adaptation;
Bloom, Nicholas, Christos Genakos, Raffaella Sadun, and John Van Reenen. "Does Management Matter: New Empirics and Old Theories." 2010.