In Simple Words
Think of evaluating drivers in different countries by using the exact same standardized road test scored by hidden observers; this reveals that drivers in some countries consistently skip basic safety checks like adjusting mirrors and using turn signals.
Observed manufacturing management scores
- Brazil, China and India
- Lower average scores
- US, Japan and Western Europe
- Higher average scores
Surveyed firms had 100–5,000 employees. Observed country differences do not establish their causes.
See source →Research question
Comparing management effectiveness across nations historically suffered from severe measurement bias. Without double-blind scoring across distinct operational dimensions, researchers could not quantify how managerial practices directly impact national productivity gaps.
Participants
Medium and large manufacturing firms (100 to 5,000 employees) across the US, Japan, Western Europe, Brazil, China, and India.
Study Design
Double-blind interview survey technique scoring three dimensions: monitoring practices, target-setting practices, and incentive practices.
Results
Developing nations (Brazil, China, India) exhibit significantly lower average management scores, with their entire distribution of management practices stochastically dominated by firms in rich countries.
Takeaway
Implement double-blind internal evaluations across plant monitoring, target-setting, and merit-based incentive systems to benchmark operations against global standards.