Tag
competition
3 findings
Firms & operationsProduct Market Competition and Bad Practice SelectionWhereas badly managed firms in competitive economies like the US systematically improve or go bankrupt, low product competition and family ownership in developing countries allow badly managed firms to survive, skewing overall average management scores downwards.Observational StudyEconomics (general)Trade Protectionism and Inefficient Firm PreservationEconomies with higher trade protectionism display a significantly wider thick tail of low-performing manufacturing firms, as high tariffs protect low-productivity producers from international competitive selection.Observational StudyFirms & operationsLow Competition and Management Distribution Thick Tail PersistenceDeveloping nations feature lower average management scores driven by a thick tail of persistent, badly run firms that fail to exit, whereas market competition in developed economies forces poorly managed firms to either reform or close down.Observational Study