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来源类型Working Paper
规范类型报告
DOI10.3386/w16658
来源IDWorking Paper 16658
Does Management Matter? Evidence from India
Nicholas Bloom; Benn Eifert; Aprajit Mahajan; David McKenzie; John Roberts
发表日期2011-01-06
出版年2011
语种英语
摘要A long-standing question in social science is to what extent differences in management cause differences in firm performance. To investigate this we ran a management field experiment on large Indian textile firms. We provided free consulting on modern management practices to a randomly chosen set of treatment plants and compared their performance to the control plants. We find that adopting these management practices had three main effects. First, it raised average productivity by 11% through improved quality and efficiency and reduced inventory. Second, it increased decentralization of decision making, as better information flow enabled owners to delegate more decisions to middle managers. Third, it increased the use of computers, necessitated by the data collection and analysis involved in modern management. Since these practices were profitable this raises the question of why firms had not adopted these before. Our results suggest that informational barriers were a primary factor in explaining this lack of adoption. Modern management is a technology that diffuses slowly between firms, with many Indian firms initially unaware of its existence or impact. Since competition was limited by constraints on firm entry and growth, badly managed firms were not rapidly driven from the market.
主题Industrial Organization ; Firm Behavior ; Other ; Accounting, Marketing, and Personnel ; Development and Growth ; Development ; Innovation and R& ; D
URLhttps://www.nber.org/papers/w16658
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/574333
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Nicholas Bloom,Benn Eifert,Aprajit Mahajan,et al. Does Management Matter? Evidence from India. 2011.
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