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Management Practices and Resilience to Shocks: Evidence from COVID-19

Author

Listed:
  • Andrea Lamorgese

    (Directorate General for Economics, Statistics and Research, Bank of Italy, 00184 Rome, Italy)

  • Megha Patnaik

    (Libera Università Internazionale degli Studi Sociali (LUISS) Guido Carli, 00197 Rome, Italy; Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom)

  • Andrea Linarello

    (Directorate General for Economics, Statistics and Research, Bank of Italy, 00184 Rome, Italy)

  • Fabiano Schivardi

    (Libera Università Internazionale degli Studi Sociali (LUISS) Guido Carli, 00197 Rome, Italy; Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom; Einaudi Institute for Economics and Finance (EIEF), 00187 Rome, Italy)

Abstract

We use the spread of COVID-19 in Italy, the first Western country hit by the pandemic, to investigate the role of structured management practices in responding to a large shock. We exploit a survey eliciting expected sales growth for 2020 to set up a difference-in-difference analysis with repeated cross sections, leveraging the fact that the data collection began prior to the pandemic and continued throughout its spread. We find a sizable effect of such practices on firm performance: a one-standard-deviation increase in the management score increases expected sales growth by 2.3%, against an average drop of 8.3%. Results are confirmed with actual sales growth. Firms with more structured practices were more likely to implement a comprehensive set of changes, including a more intense use of remote work.

Suggested Citation

  • Andrea Lamorgese & Megha Patnaik & Andrea Linarello & Fabiano Schivardi, 2024. "Management Practices and Resilience to Shocks: Evidence from COVID-19," Management Science, INFORMS, vol. 70(12), pages 9058-9072, December.
    • Handle: RePEc:inm:ormnsc:v:70:y:2024:i:12:p:9058-9072
    DOI: 10.1287/mnsc.2021.01341
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    2. Laura Ketter & Todd Morris & Lizi Yu, 2025. "A new equilibrium: COVID-19 lockdowns and WFH persistence," Papers 2506.16671, arXiv.org.
    3. Siavash Mohades & Giulia Piccillo & Maria Savona & Tania Treibich, 2025. "Firms’ Investment and Capacity Utilisation: The Role of Financial Constraints and Uncertainty," CESifo Working Paper Series 12108, CESifo.
    4. Kyle Jones & Wei Li & Paul Mizen & Rebecca Riley & Jakob Schneebacher, 2026. "Managing to adapt: structured management practices and firm resilience," IFS Working Papers W26/13, Institute for Fiscal Studies.
    5. Alloysius Joko PURWANTO & Ridwan Dewayanto RUSLI & Hafis Pratama Rendra GRAHA & Sirichai KOONAPHAPDEELERT & Reza Miftahul ULUM & Citra Endah Nur SETYAWATI & Nadiya PRANINDITA & Ryan Wiratama BHASKARA, 2025. "Global Pandemic Shocks, Foreign Exposure and Firm Productivity: Evidence from Korean Firm-level Data," Working Papers DP-2024-38, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Filippo Boeri & Riccardo Crescenzi & Davide Rigo, 2025. "Work from Home and Firm Productivity: The Role of ICT and Size," CESifo Working Paper Series 12253, CESifo.
    7. Ketter, Laura & Morris, Todd & Yu, Lizi, 2025. "A New Equilibrium: COVID-19 Lockdowns and WFH Persistence," IZA Discussion Papers 17975, IZA Network @ LISER.
    8. Yao, Rongrong & Xiao, Min & Lin, Ling & Zhang, Xiaoying, 2026. "Only the connected survive: Common ownership and corporate resilience," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).
    9. Marco Castelluccio & Lucia Rizzica, 2025. "Mafia infiltrations in times of crisis: evidence from the Covid-19 shock," Temi di discussione (Economic working papers) 1502, Bank of Italy, Economic Research and International Relations Area.
    10. Basso, Gaetano & De Paola, Maria & Lattanzio, Salvatore & Paradisi, Matteo, 2026. "Workplace Flexibility and the Motherhood Penalty: Evidence from the Diffusion of Remote Work," CEPR Discussion Papers 21486, Centre for Economic Policy Research.
    11. Amin, Mohammad & Islam, Asif Mohammed & Padhi, Debasmita, 2026. "Do Informal Businesses with More-Educated Owners Adopt Better Business Practices ? Evidence from the Central African Republic," Policy Research Working Paper Series 11280, The World Bank.
    12. Florian Englmaier & Jose E. Galdon-Sanchez & Ricard Gil & Michael Kaiser & Helene Strandt, 2025. "Management Practices and Firm Performance During the Great Recession," Rationality and Competition Discussion Paper Series 548, CRC TRR 190 Rationality and Competition.
    13. Gaetano Basso & Davide Dottori & Sara Formai, 2025. "Working from home and labour productivity: firm-level evidence," Temi di discussione (Economic working papers) 1508, Bank of Italy, Economic Research and International Relations Area.
    14. Topaler Başak & Khan Hamza, 2025. "Signaling shaped by the context: Early-stage funding in the Turkish startup ecosystem," Management & Marketing, Sciendo, vol. 20(3), pages 65-77.

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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