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What Drives Differences in Management?

Nicholas Bloom (), Erik Brynjolfsson, Lucia Foster (), Ron Jarmin (), Megha Patnaik (), Itay Saporta-Eksten () and John van Reenen ()
Additional contact information
Lucia Foster: U.S. Census Bureau
Megha Patnaik: Stanford University
Itay Saporta-Eksten: Tel Aviv University

Authors registered in the RePEc Author Service: Itay Saporta Eksten ()

No 10724, IZA Discussion Papers from Institute for the Study of Labor (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: learning; competition; productivity; management (search for similar items in EconPapers)
JEL-codes: L2 M2 O32 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse and nep-hrm
Date: 2017-04
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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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