Management Practices and Productivity in Germany

Sandra Broszeit (), Ursula Fritsch, Holger Görg and Marie-Christine Laible ()
Additional contact information
Sandra Broszeit: Institute for Employment Research (IAB), Nuremberg
Marie-Christine Laible: Institute for Employment Research (IAB), Nuremberg

No 10370, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on a novel dataset, the "German Management and Organizational Practices" (GMOP) Survey, we calculate establishment specific management scores following Bloom and van Reenen as indicators of management quality. We find substantial heterogeneity in management practices across establishments in Germany, with small firms having lower scores than large firms on average. We show a robust positive and economically important association between the management score and establishment level productivity in Germany. This association increases with firm size. Comparison to a similar survey in the US indicates that the average management score is lower in Germany than in the US. Overall, our results point towards lower management quality being at least in part to blame for the differences in aggregate productivity between Germany and the US.

Keywords: management practices; firm performance; labor productivity; GMOP; MOPS (search for similar items in EconPapers)
JEL-codes: D24 L2 M2 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016-11
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-hrm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published - published in: German Economic Review, 2019, 20 (4), e663-e688

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Related works:
Journal Article: Management Practices and Productivity in Germany (2019)
Journal Article: Management Practices and Productivity in Germany (2019)
Working Paper: Management practices and productivity in Germany (2016)
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