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In brief: Management in America


  • Nicholas Bloom
  • Erik Brynjolfsson
  • Lucia Foster
  • Ron Jarmin
  • Megha Patnaik
  • Itay Saporta-Eksten
  • John Van Reenen


There are strong links between the performance of US manufacturing plants and the quality of their systems of monitoring, targets and incentives, according to research by Professor Nicholas Bloom and colleagues. Their analysis of data on more than 30,000 establishments, gathered in the first large-scale survey of management practices in America, finds that effective performance monitoring, targets and incentives are strongly linked to more intensive use of IT. The study also finds that there is huge variation in management in America: for example, establishments in America's South and Midwest have more structured management practices on average than those in the Northeast and West. Higher management scores have a strong relationship with improved productivity and profits.

Suggested Citation

  • Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Megha Patnaik & Itay Saporta-Eksten & John Van Reenen, 2014. "In brief: Management in America," CentrePiece - The Magazine for Economic Performance 423, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepcnp:423

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    Cited by:

    1. Beata Javorcik & Steven Poelhekke, 2017. "Former Foreign Affiliates: Cast Out and Outperformed?," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 501-539.

    More about this item


    IT; management; productivity; organization;

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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