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What Drives Differences in Management?

Nicholas Bloom, Erik Brynjolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten (itaysap@tauex.tau.ac.il) and John van Reenen
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Itay Saporta-Eksten: Tel Aviv University

Authors registered in the RePEc Author Service: Itay Saporta Eksten

No 10724, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Partnering with the Census we implement a new survey of "structured" management practices in 32,000 US manufacturing plants. We find an enormous dispersion of management practices across plants, with 40% of this variation across plants within the same firm. This management variation accounts for about a fifth of the spread of productivity, a similar fraction as that accounted for by R&D, and twice as much as explained by IT. We find evidence for four "drivers" of management: competition, business environment, learning spillovers and human capital. Collectively, these drivers account for about a third of the dispersion of structured management practices.

Keywords: management; productivity; competition; learning (search for similar items in EconPapers)
JEL-codes: L2 M2 O32 O33 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2017-04
New Economics Papers: this item is included in nep-cse and nep-hrm
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Citations: View citations in EconPapers (38)

Published - published in: American Economic Review, 2019, 109 (5), 1648 - 1683

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Working Paper: What Drives Differences in Management? (2017) Downloads
Working Paper: What drives differences in management? (2017) Downloads
Working Paper: What Drives Differences in Management? (2017) Downloads
Working Paper: What Drives Differences in Management? (2017) Downloads
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