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Determinants of Management Practices among Manufacturing Firms in Pakistan (Article)

Author

Listed:
  • Farrukh Iqbal

    (Istitute of Business Administration, Karachi.)

  • Aadil Nakhoda

    (Istitute of Business Administration, Karachi.)

Abstract

A strong case for looking at management quality as a source of productivity has been assembled in recent years by studies showing that variations in management quality account for a big part of the productivity gap across firms and countries. In this paper, we investigate the determinants of management quality among Pakistani manufacturing firms, using a new World Bank Enterprise Survey that provides firm-level information on the use of modern management practices. Our findings suggest that the adoption of good management practices is influenced by such characteristics as firm size, product market competition, ownership type, and the information available to staff and managers. We also find that such considerations are more relevant for medium and large firms than for small firms. Finally, we find that the link between management practices and productivity is not uniform and varies from practice to practice.

Suggested Citation

  • Farrukh Iqbal & Aadil Nakhoda, 2024. "Determinants of Management Practices among Manufacturing Firms in Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 63(1), pages 45-64.
    • Handle: RePEc:pid:journl:v:63:y:2024:i:1:p:45-64
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    File URL: https://file.pide.org.pk/pdfpdr/2024/45-64.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    2. Daniela Scur & Raffaella Sadun & John Van Reenen & Renata Lemos & Nicholas Bloom, 2021. "The World Management Survey at 18: lessons and the way forward," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 231-258.
    3. Abdul Raziq, 2014. "The Relationship between Firm Size and High Performance Management Practices in Pakistani SMEs," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(2), pages 27-36, May.
    4. Agarwal, Renu & Green, Roy & Brown, Paul J. & Tan, Hao & Randhawa, Krithika, 2013. "Determinants of quality management practices: An empirical study of New Zealand manufacturing firms," International Journal of Production Economics, Elsevier, vol. 142(1), pages 130-145.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Management Practices; Productivity; Product Market Competition; Ownership Diffusion; Information Access; World Bank Enterprise Survey;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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