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Recent advances in the empirics of organizational economics

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  • Nick Bloom
  • Raffaella Sadun
  • John Van Reenen

Abstract

We present a survey of recent contributions in the empirical organizational economics, focusing on management practices and decentralization. Productivity dispersion between firms and countries has motivated the improved measurement of firm organization across industries and countries. There appears to be substantial variation in management practices and decentralization between countries, but especially within countries. Much of the poorer average management quality in countries like Brazil and India seems due to a “long tail” of poorly managed firms, which barely exist in the US. Many basic economic theories are supported by this new data. Some stylized facts include: (1) competition seems to foster improved management and decentralization; (2) larger firms, skillintensive plants and foreign multinationals appear better managed and are more decentralized; (3) family owned and managed firms appear to have worse management; (4) firms facing an environment of lighter labor market regulations, and more human capital intensive organizations specialize relatively more in “people management”. There is evidence for complementarities between ICT, decentralization and management, but the relationship is complex and identification of the productivity effects of organizational practices remain a challenge for future research.

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File URL: http://eprints.lse.ac.uk/28721/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 28721.

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Length: 64 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:ehl:lserod:28721

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Keywords: productivity; organization; management; decentralization;

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References

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Cited by:
  1. Junichiro Ishida, 2012. "Promotion without Commitment: Signaling, Time Inconsistency and Decentralization of the Firm," ISER Discussion Paper 0843, Institute of Social and Economic Research, Osaka University.
  2. Algan, Yann & Cahuc, Pierre, 2013. "Trust, Growth and Well-Being: New Evidence and Policy Implications," CEPR Discussion Papers 9548, C.E.P.R. Discussion Papers.
  3. López, Alberto, 2012. "Productivity effects of ICTs and organizational change: A test of the complementarity hypothesis in Spain," MPRA Paper 40400, University Library of Munich, Germany.
  4. Spyros Arvanitis & Tobias Stucki & Florian Seliger, 2013. "The Relative Importance of Human Resource Management Practices for a Firm’s Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.

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