Management Practices and Resilience to Shocks: Evidence from COVID-19

Andrea Lamorgese, Megha Patnaik, Andrea Linarello and Fabiano Schivardi

Management Science, 2024, vol. 70, issue 12, 9058-9072

Abstract: 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 exploit a survey eliciting expected sales growth for 2020 to set up a difference-in-difference analysis with repeated cross sections, leveraging the fact that the data collection began prior to the pandemic and continued throughout its spread. We find a sizable effect of such practices on firm performance: a one-standard-deviation increase in the management score increases expected sales growth by 2.3%, against an average drop of 8.3%. Results are confirmed with actual sales growth. Firms with more structured practices were more likely to implement a comprehensive set of changes, including a more intense use of remote work.

Keywords: management; firm performance; COVID-19 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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http://dx.doi.org/10.1287/mnsc.2021.01341 (application/pdf)

Related works:
Working Paper: Management practices and resilience to shocks: Evidence from COVID-19 (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:70:y:2024:i:12:p:9058-9072

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