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Management practices and productivity in Japan: Evidence from six industries in JP MOPS

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  • Kambayashi, Ryo
  • Ohyama, Atsushi
  • Hori, Nobuko

Abstract

We use the Japanese Management and Organizational Practices Survey (JP MOPS) across six industries to understand the unique and general features of Japanese management practices and their impact on productivity. This study uses management scores, constructed from survey questions about management practices, that intend to measure the quality of operational efficiency embedded in a set of management practices. Our analyses reveal several interesting and shared features of Japanese management practices. First, there is substantial variation in management scores across establishments in each industry. Second, the patterns of management practices and their association with potential drivers are quite similar across the six industries. Third, management scores are high when establishments recognize that they face many competitors. Fourth, management scores are positively associated with labor productivity in most industries. Finally, labor shares decline with management scores. This study shows important roles played by management practices in establishment and firm activities.

Suggested Citation

  • Kambayashi, Ryo & Ohyama, Atsushi & Hori, Nobuko, 2021. "Management practices and productivity in Japan: Evidence from six industries in JP MOPS," Journal of the Japanese and International Economies, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:jjieco:v:61:y:2021:i:c:s0889158321000319
    DOI: 10.1016/j.jjie.2021.101152
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    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
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    4. Buffington, Catherine & Foster, Lucia & Jarmin, Ron & Ohlmacher, Scott & Ohlmacher, Scott, 2017. "The management and organizational practices survey (MOPS): An overview1," Journal of Economic and Social Measurement, IOS Press, issue 1, pages 1-26.
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    14. Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Megha Patnaik & Itay Saporta-Eksten & John Van Reenen, 2019. "What Drives Differences in Management Practices?," American Economic Review, American Economic Association, vol. 109(5), pages 1648-1683, May.
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    Cited by:

    1. Imani, Yusuke & Ohyama, Atsushi, 2022. "The Roles of Structured Management in the Formation of Transactional Relationships," TDB-CAREE Discussion Paper Series E-2021-07, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.

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    More about this item

    Keywords

    Management practices; Productivity;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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