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Measuring and Explaining Management Practices in Italy

Author

Listed:
  • Nick Bloom

    (Stanford University)

  • Raffaella Sadun

    (London School of Economics)

  • John Van Reenen

    (London School of Economics)

Abstract

We use an innovative survey tool to collect management practice data from more than 900 medium sized manufacturing firms across Europe and the US. Our measures of managerial practices are strongly associated with several measures of firm level performance. Management practices display significant crosscountry and within-country differences, with US firms on average better managed than European firms. Italian firms show a significant managerial gap vis-à-vis the US, particularly among Italian companies that are owned and run by families. We document a positive association between product market competition and the overall level of skills within the firm. Product market competition and family-owned, family-run firms account for 60% of the American managerial advantage over Italians.

Suggested Citation

  • Nick Bloom & Raffaella Sadun & John Van Reenen, 2008. "Measuring and Explaining Management Practices in Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 15-56, March-Apr.
    • Handle: RePEc:rpo:ripoec:v:98:y:2008:i:2:p:15-56
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    File URL: http://www.rivistapoliticaeconomica.it/2008/mar-apr/Bloom.pdf
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    References listed on IDEAS

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    1. Villalonga, Belen & Amit, Raphael, 2006. "How do family ownership, control and management affect firm value?," Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417, May.
    2. 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.
    3. Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE.
    4. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    5. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    6. Marco Manacorda & Enrico Moretti, 2006. "Why do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 800-829, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marco Cucculelli & Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2014. "Owner‐Management, Firm Age, and Productivity in Italian Family Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(2), pages 325-343, April.
    2. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    3. Ann Bartel & Casey Ichniowski & Kathryn L. Shaw & Ricardo Correa, 2009. "International Differences in the Adoption and Impact of New Information Technologies and New HR Practices: The Valve-Making Industry in the United States and United Kingdom," NBER Chapters, in: International Differences in the Business Practices and Productivity of Firms, pages 55-78, National Bureau of Economic Research, Inc.
    4. Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2016. "Family Firms and Productivity: The Role of Institutional Quality," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 343-343, September.
    5. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2020. "Does public sector inefficiency constrain firm productivity? Evidence from Italian provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 1019-1049, August.
    6. Nick Bloom & John Van Reenen, 2010. "New Approaches to Measuring Management and Firm Organization," CEP Discussion Papers dp0969, Centre for Economic Performance, LSE.
    7. Nicholas Crafts & Marco Magnani, 2011. "The Golden Age and the Second Globalization in Italy," Quaderni di storia economica (Economic History Working Papers) 17, Bank of Italy, Economic Research and International Relations Area.
    8. Giorgio Barba Navaretti & Matteo Bugamelli & Riccardo Cristadoro & Daniela Maggioni, 2012. "Are firms exporting to China and India different from other exporters?," Questioni di Economia e Finanza (Occasional Papers) 112, Bank of Italy, Economic Research and International Relations Area.
    9. Annalisa Cristini & Dario Pozzoli, 2010. "Workplace practices and firm performance in manufacturing," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(7), pages 818-842, October.
    10. Marco Cucculelli & Ivano Dileo & Marco Pini, 2022. "Filling the void of family leadership: institutional support to business model changes in the Italian Industry 4.0 experience," The Journal of Technology Transfer, Springer, vol. 47(1), pages 213-241, February.

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    More about this item

    Keywords

    management practices; productivity; competition; family firms; Italy;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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