EconPapers    
Economics at your fingertips  
 

Does Management Matter? Evidence from India

Nicholas Bloom (), Benn Eifert, Aprajit Mahajan, David McKenzie () and John Roberts

The Quarterly Journal of Economics, 2013, vol. 128, issue 1, 1-51

Abstract: A long-standing question is whether differences in management practices across firms can explain differences in productivity, especially in developing countries where these spreads appear particularly large. To investigate this, we ran a management field experiment on large Indian textile firms. We provided free consulting on management practices to randomly chosen treatment plants and compared their performance to a set of control plants. We find that adopting these management practices raised productivity by 17% in the first year through improved quality and efficiency and reduced inventory, and within three years led to the opening of more production plants. Why had the firms not adopted these profitable practices previously? Our results suggest that informational barriers were the primary factor explaining this lack of adoption. Also, because reallocation across firms appeared to be constrained by limits on managerial time, competition had not forced badly managed firms to exit. JEL Codes: L2, M2, O14, O32, O33. Copyright 2013, Oxford University Press.

Date: 2013
References: Add references at CitEc
Citations View citations in EconPapers (132) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/qje/qjs044 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Does Management Matter? Evidence from India (2011) Downloads
Working Paper: Does management matter?: evidence from India (2011) Downloads
Working Paper: Does Management Matter? Evidence from India (2011) Downloads
Working Paper: Does management matter ? evidence from India (2011) Downloads
Working Paper: Does Management Matter?: Evidence from India (2010) Downloads
Working Paper: Does management matter?: evidence from India (2010) Downloads
Working Paper: Does Management Matter? Evidence From India (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:128:y:2013:i:1:p:1-51

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Elhanan Helpman, Lawrence F. Katz and Andrei Schleifer

More articles in The Quarterly Journal of Economics from Oxford University Press
Series data maintained by Oxford University Press ().

 
Page updated 2017-12-05
Handle: RePEc:oup:qjecon:v:128:y:2013:i:1:p:1-51