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Management Practices and Productivity in Germany

Author

Listed:
  • Broszeit, Sandra

    () (Institute for Employment Research (IAB), Nuremberg)

  • Fritsch, Ursula

    (Kiel Institute for the World Economy)

  • Görg, Holger

    () (Kiel Institute for the World Economy)

  • Laible, Marie-Christine

    () (Institute for Employment Research (IAB), Nuremberg)

Abstract

Based on a novel dataset, the "German Management and Organizational Practices" (GMOP) Survey, we calculate establishment specific management scores following Bloom and van Reenen as indicators of management quality. We find substantial heterogeneity in management practices across establishments in Germany, with small firms having lower scores than large firms on average. We show a robust positive and economically important association between the management score and establishment level productivity in Germany. This association increases with firm size. Comparison to a similar survey in the US indicates that the average management score is lower in Germany than in the US. Overall, our results point towards lower management quality being at least in part to blame for the differences in aggregate productivity between Germany and the US.

Suggested Citation

  • Broszeit, Sandra & Fritsch, Ursula & Görg, Holger & Laible, Marie-Christine, 2016. "Management Practices and Productivity in Germany," IZA Discussion Papers 10370, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10370
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    References listed on IDEAS

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    1. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 967-1015.
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    4. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
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    22. repec:nms:wsimit:10.5771/0342-300x-2016-3-172 is not listed on IDEAS
    23. repec:dau:papers:123456789/4727 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Alex Bryson & John Forth, 2018. "The Impact of Management Practices on SME Performance," National Institute of Economic and Social Research (NIESR) Discussion Papers 488, National Institute of Economic and Social Research.
    2. Görg, Holger & Hanley, Aoife, 2017. "Globalization: Implications for firms in Germany," Working Papers 04/2017, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    3. Michael Barry & Alex Bryson & Rafael Gomez & Bruce Kaufman & Guenther Lomas & Adrian Wilkinson, 2018. "The ''Good Workplace'': The Role of Joint Consultative Committees, Unions and HR policies in Employee Ratings of Workplaces in Britain," DoQSS Working Papers 18-08, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    4. Alex Bryson & Lucy Stokes & David Wilkinson, 2018. "Is Pupil Attainment Higher in Well-managed Schools?," DoQSS Working Papers 18-09, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    5. Broszeit, Sandra & Laible, Marie-Christine, 2017. "The German Management and Organizational Practices (GMOP) Survey : Survey design and data quality," FDZ Methodenreport 201702_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).
    7. Michael White & Alex Bryson, 2018. "HPWS in the Public Sector: Are There Mutual Gains?," DoQSS Working Papers 18-10, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    8. Broszeit, Sandra & Laible, Marie-Christine, 2017. "Examining the link between health measures, management practices and establishment performance," IAB Discussion Paper 201726, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Grass, Karen & Weber, Enzo, 2016. "EU 4.0 - Die Debatte zu Digitalisierung und Arbeitsmarkt in Europa," IAB Discussion Paper 201639, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Wim Naudé & Paula Nagler, 2018. "Technological Innovation, Entrepreneurship and Productivity in Germany, 1871-2015," SPRU Working Paper Series 2018-02, SPRU - Science Policy Research Unit, University of Sussex Business School.

    More about this item

    Keywords

    management practices; firm performance; labor productivity; GMOP; MOPS;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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