What is good management, and how is it transmitted across firms and plants? In a recent paper, we use survey and administrative data, coupled with a structural model of management, to explore these questions. We show that well-managed manufacturing firms - that is, firms that adopt more structured management practices described below - not only open and acquire more plants, but also close and sell more plants.
Nicholas Bloom, Jonathan S. Hartley, Raffaella Sadun, Rachel Schuh and John Van Reenen
13 August 2025
Liberty Street Economics
https://libertystreeteconomics.newyorkfed.org/2025/08/how-firms-spread-good-management/
This work is published under POID and the CEP's Growth programme.
This publication comes under the following CEP theme: Management practices and productivity