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Management Practices and Firm Performance in Japanese and Korean Firms -An Empirical Study Using Interview Surveys-

Author

Listed:
  • MIYAGAWA Tsutomu
  • Keun LEE
  • KABE Shigesaburo
  • Junhyup LEE
  • Hyoungjin KIM
  • YoungGak KIM
  • EDAMURA Kazuma

Abstract

To compare management practices between Japanese and Korean firms, we conducted interview surveys on organizational and human resource management based on Bloom and Van Reenen (2007). The average management scores resulting from the interview surveys in Japanese firms were higher than in Korean firms. The gap in the scores between Japan and Korea can be explained by more conservative human resource management practices in Korean small and medium sized firms. We regressed some indicators representing management practices on firm performance. Estimation results suggest that human resource management affects firm performance in Korean firms. In Japanese firms, we expect that organizational reform plays a role in improving firm performance in the service sector.

Suggested Citation

  • MIYAGAWA Tsutomu & Keun LEE & KABE Shigesaburo & Junhyup LEE & Hyoungjin KIM & YoungGak KIM & EDAMURA Kazuma, 2010. "Management Practices and Firm Performance in Japanese and Korean Firms -An Empirical Study Using Interview Surveys-," Discussion papers 10013, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:10013
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    Cited by:

    1. MIYAGAWA Tsutomu & Keun LEE & EDAMURA Kazuma & YoungGak KIM & Hosung JUNG, 2014. "Is Productivity Growth Correlated with Improvements in Management Quality? An empirical study using interview surveys in Korea and Japan," Discussion papers 14048, Research Institute of Economy, Trade and Industry (RIETI).
    2. ASABA Shigeru, 2017. "Do Family Firms Have Worse (or Better) Management Practices?," Discussion papers 17052, Research Institute of Economy, Trade and Industry (RIETI).
    3. MORIKAWA Masayuki, 2012. "Financial Constraints in Intangible Investments: Evidence from Japanese firms," Discussion papers 12045, Research Institute of Economy, Trade and Industry (RIETI).
    4. KAWAKAMI Atsushi & ASABA Shigeru, 2013. "How Does the Market Value Management Practices? Decomposition of intangible assets," Discussion papers 13044, Research Institute of Economy, Trade and Industry (RIETI).
    5. KAWAKAMI Atsushi & ASABA Shigeru, 2014. "How Does the Market Value Organizational Management Practices of Japanese Firms? Using interview survey data," Discussion papers 14050, Research Institute of Economy, Trade and Industry (RIETI).
    6. Sébastien Lechevalier, 2012. "The Japanese Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 16, Edward Elgar Publishing.

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