What Matters for Managerial Practices?

Posted: 29 Aug 2019

See all articles by Victor Manuel Bennett

Victor Manuel Bennett

University of Utah

Megan Lawrence

Vanderbilt University - Strategy and Business Economics

Date Written: August 3, 2019


Persistent performance differences across seemingly similar enterprises is a central puzzle in Strategy. Differences in management practices, particularly those captured by the World Management Survey (WMS), have been argued to account for some of this variation in performance. We parallel the prior performance decomposition literature in order to additionally estimate how much variance in performance can be attributed to this particular form of management. We find that about 13% of the variance in sales can be attributed to WMS practices, which raises the question of what drives those practices. We then decompose the variance in management practices. In doing so, we provide a bridge between the economics and strategy literatures on management practices.

Keywords: Strategy, Management Practices, Industry Analysis, Variance Decomposition, Methods

Suggested Citation

Bennett, Victor Manuel and Lawrence, Megan, What Matters for Managerial Practices? (August 3, 2019). Available at SSRN: https://ssrn.com/abstract=2332799 or http://dx.doi.org/10.2139/ssrn.2332799

Victor Manuel Bennett (Contact Author)

University of Utah ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

HOME PAGE: http://vmbennett.com

Megan Lawrence

Vanderbilt University - Strategy and Business Economics ( email )

Nashville, TN 37203
United States

HOME PAGE: http://www.meganllawrence.com

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