Do Management Interventions Last? Evidence from India

37 Pages Posted: 14 Feb 2018

See all articles by Nicholas Bloom

Nicholas Bloom

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

Aprajit Mahajan

Stanford University; University of California, Berkeley - Department of Agricultural & Resource Economics; National Bureau of Economic Research (NBER)

David J. McKenzie

World Bank - Development Research Group (DECRG); IZA Institute of Labor Economics

Donald John Roberts

Stanford Graduate School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: February 13, 2018

Abstract

Beginning in 2008, the authors conducted a randomized controlled trial that changed management practices in a set of Indian weaving firms (Bloom et al. 2013). In 2017 the plants were revisited and the authors found three main results. First, while about half of the management practices adopted in the original experimental plants had been dropped, there was still a large and significant gap in practices between the treatment and control plants. Likewise, there remained a significant performance gap between treatment and control plants, suggesting lasting impacts of effective management interventions. Second, while few management practices had demonstrably spread across the firms in the study, many had spread within firms, from the experimental plants to the non-experimental plants, suggesting limited spillovers between firms but large spillovers within firms. Third, managerial turnover and the lack of director time were two of the most cited reasons for the drop in management practices in experimental plants, highlighting the importance of key employees.

Suggested Citation

Bloom, Nicholas and Mahajan, Aprajit and McKenzie, David John and Roberts, Donald John, Do Management Interventions Last? Evidence from India (February 13, 2018). World Bank Policy Research Working Paper No. 8339. Available at SSRN: https://ssrn.com/abstract=3123485

Nicholas Bloom (Contact Author)

Stanford University - Department of Economics ( email )

Landau Economics Building, Room 231
579 Serra Mall
Stanford, CA 94305-6072
United States
650-725-7836 (Phone)

HOME PAGE: http://economics.stanford.edu/faculty/bloom

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Aprajit Mahajan

Stanford University ( email )

Stanford, CA 94305
United States

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David John McKenzie

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Donald John Roberts

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
650-723-9345 (Phone)
650-725-0468 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
42
Abstract Views
150
PlumX Metrics