Countries and Firms Explaining Managerial Performances

A large body of research in recent years result in the growth of knowledge about better or worse management practices. However, comparative research using firm-level data has been limited by the different styles on management and by the unavailability of homogeneous data sources, especially in former transition and Asian countries. This study fills this gap, by using the firm-level survey by EBRD and World Bank (BEEPSV-MENA ES, 2012-2014) and by looking at the determinants of a ManagementQualityScore(MQS)formorethan17.000firmsin36countriesofCentralAsia,Eastern EuropeandNorthernAfrica. Wefindthatboth,countryandfirmcharacteristics,matterformanagerial skills but they weight differently. In fact the country-groupings change, accelerate or dampen the impact of firms characteristics on management performance so that different channels are conducive tobettermanagerialpractices. Competition,education,andtechnologyaretheimportantchannelsfor thehigh-incomecountries, whereasglobalvaluechainparticipationandownershiparethesignificant channelsforthelow-incomecountries. Inparticular,GVCparticipationenhancessignificantlymanagerial practices of firms in low-income countries especially for the lower quartile firms. Hence, this study providesempiricalsupportforaninterplaybetweencountryandfirmcharacteristicsintransitionaland emerging markets. In addition, it provides support for an enhanced connection between business environment reforms devoted to managerial upgrading and industrial policy devoted to enhancing best-performingfirmscharacteristics. Assuch,itsuggeststhatonlytheircomplementaryandtargeted use can support management and business practices upgrading.

Author(s) Details

Roberto Iorio
Department of Political and Social Sciences, University of Salerno, Italy.

Maria Luigia Segnana
 Department of Economics and Management, University of Trento, Italy.

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