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IT and management in America

Bloom, Nicholas and Brynjolfsson, Erik and Foster, Lucia and Jarmin, Ron and Patnaik, Megha and Saporta-Eksten, Itay and Van Reenen, John (2014) IT and management in America. CEP Discussion Papers, CEPDP1258. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: CEPDP1258

Abstract

The Census Bureau recently conducted a survey of management practices in over 30,000 plants across the US, the first large-scale survey of management in America. Analyzing these data reveals several striking results. First, more structured management practices are tightly linked to higher levels of IT intensity in terms of a higher expenditure on IT and more on-line sales. Likewise, more structured management is strongly linked with superior performance: establishments adopting more structured practices for performance monitoring, target setting and incentives enjoy greater productivity and profitability, higher rates of innovation and faster employment growth. Second, there is a substantial dispersion of management practices across the establishments. We find that 18% of establishments have adopted at least 75% of these more structured management practices, while 27% of establishments adopted less than 50% of these. Third, more structured management practices are more likely to be found in establishments that export, who are larger (or are part of bigger firms), and have more educated employees. Establishments in the South and Midwest have more structured practices on average than those in the Northeast and West. Finally, we find adoption of structured management practices has increased between 2005 and 2010 for surviving establishments, particularly for those practices involving data collection and analysis.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2014 The Authors
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
JEL classification: M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Series: Working Papers > CEP Discussion Papers
Date Deposited: 26 Nov 2014 12:46
Last Modified: 26 Nov 2014 12:46
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60267

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