Management practices and resilience to shocks: Evidence from COVID-19

Andrea Lamorgese, Andrea Linarello, Megha Patnaik and Fabiano Schivardi

No 15987, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Do organizational practices help or hinder the firm's capacity to adapt to a changing environment? We use the spread of COVID-19 in Italy, the first Western country hit by the pandemic, to investigate the role of structured management practices in responding to a large shock. We find a sizable, positive effect of structured management practices on firm performance: a one-standard deviation increase in the management score reduces the drop in year-ahead expected sales by 30 percent. Evidence points to the fact that firms with more structured practices were more likely to implement a comprehensive set of changes, such as demand, supply chain and labor management, including more intense use of remote work.

Keywords: Management; Firm performance; Covid-19 (search for similar items in EconPapers)
JEL-codes: D22 D24 L20 L25 M11 (search for similar items in EconPapers)
Date: 2022-07
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Journal Article: Management Practices and Resilience to Shocks: Evidence from COVID-19 (2024)
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