What Drives Differences in Management?

Nicholas Bloom, Erik Brynjolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten and John van Reenen

No 23300, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: L2 M2 (search for similar items in EconPapers)
Date: 2017-03
New Economics Papers: this item is included in nep-eff, nep-hrm and nep-tid
Note: CF IO LS PR
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Citations: View citations in EconPapers (45)

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Related works:
Working Paper: What Drives Differences in Management? (2017)
Working Paper: What drives differences in management? (2017)
Working Paper: What Drives Differences in Management? (2017)
Working Paper: What Drives Differences in Management? (2017)
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