What drives differences in management practices?

Bloom, Nicholas, Brynjolfsson, Erik, Foster, Lucia, Jarmin, Ron, Patnaik, Megha, Saporta-Eksten, Itay and Van Reenen, John ORCID: 0000-0001-9153-2907 (2017) What drives differences in management practices? CEP Discussion Papers (1470). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2017 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification:	L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M20 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	21 Jul 2017 09:44
Last Modified:	09 May 2025 01:39
Funders:	Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/83600

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