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What drives differences in management practices?

Bloom, Nicholas, Brynjolfsson, Erik, Foster, Lucia, Jarmin, Ron, Patnaik, Megha, Saporta-Eksten, Itay and Van Reenen, John (2017) What drives differences in management practices? CEP Discussion Papers (CEPDP1470). Centre for Economic Performance, London School of Economics and Political Science, 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
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 21 Jul 2017 09:44
Last Modified: 20 Feb 2019 04:01
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/83600

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