Measuring and Explaining Management Practices Across Firms and Countries

Advanced Institute of Management Research Paper No. 057

68 Pages Posted: 3 Dec 2008

See all articles by Nicholas Bloom

Nicholas Bloom

Stanford University - Department of Economics; National Bureau of Economic Research (NBER)

John Van Reenen

London School of Economics - Centre for Economic Performance (CEP); Stanford Graduate School of Business; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 5 versions of this paper

Date Written: April 1, 2007

Abstract

We use an innovative survey tool to collect management practice data from 732 medium sized firms in the U.S., France, Germany and the U.K. These measures of managerial practice are strongly associated with firm-level productivity, profitability, Tobin's Q and survival rates. Management practices also display significant cross-country differences with U.S. firms on average better managed than European firms, and significant within-country differences with a long tail of extremely badly managed firms. We find that poor management practices are more prevalent when product market competition is weak and/or when family-owned firms pass management control down to the eldest sons (primo geniture).

Suggested Citation

Bloom, Nicholas and Van Reenen, John Michael, Measuring and Explaining Management Practices Across Firms and Countries (April 1, 2007). Advanced Institute of Management Research Paper No. 057. Available at SSRN: https://ssrn.com/abstract=1309576 or http://dx.doi.org/10.2139/ssrn.1309576

Nicholas Bloom (Contact Author)

Stanford University - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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John Michael Van Reenen

London School of Economics - Centre for Economic Performance (CEP) ( email )

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Stanford Graduate School of Business ( email )

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Institute for Fiscal Studies (IFS) ( email )

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Centre for Economic Policy Research (CEPR)

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