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Recent advances in the empirics of organizational economics

Bloom, Nicholas and Sadun, Raffaella and Van Reenen, John (2010) Recent advances in the empirics of organizational economics. Annual Review of Economics, 2 (1). pp. 105-137. ISSN 1941-1383

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Identification Number: 10.1146/annurev.economics.050708.143328

Abstract

We present a survey of recent contributions in empirical organizational economics, focusing on management practices and decentralization. Productivity dispersion between firms and countries has motivated the improved measurement of firm organization across industries and countries. There appears to be substantial variation in management practices and decentralization not only between countries, but also especially within countries. Much of the poorer average management quality in countries like Brazil and India seems to result from a long tail of poorly managed firms, which barely exist in the United States. Some stylized facts include the following: (a) Competition seems to foster improved management and decentralization; (b) larger firms, skill-intensive plants, and foreign multinationals appear better managed and are more decentralized; (c) firms that are both family owned and managed appear to have worse management and are more centralized; and (d) firms facing an environment of lighter labor market regulations and more human capital specialize relatively more in people management. There is evidence for complementarities between information and communication technology, decentralization, and management, but the relationship is complex, and identification of the productivity effects of organizational practices remains a challenge for future research.

Item Type: Article
Official URL: http://www.annualreviews.org/journal/economics
Additional Information: © 2010 Annual Reviews
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Economics
Research centres and groups > Centre for Economic Performance (CEP)
Collections > Economists Online
Date Deposited: 10 Apr 2011 12:29
Last Modified: 18 May 2011 09:52
URI: http://eprints.lse.ac.uk/id/eprint/35343

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