Tag
decentralization
7 findings
Firms & operationsOwner Time-Constraint Bottleneck via Centralized Decision-MakingDeveloped-country plant managers can make capital investments averaging $50,000 without higher authorization, whereas developing-country owners sign off on minor $25 purchase orders; the number of owner brothers and sons directly predicts firm size due to selective family delegation.Observational StudyFirms & operationsHierarchical Decision Delays and Operational DowntimeMiddle plant managers lacked financial spending authority to purchase spare parts for broken textile lifts and trolleys, causing basic equipment breakdowns to persist unaddressed and inducing substantial productivity drops.RCTFirms & operationsOwner Centralization and Decision-Making Delegation BarriersPlant managers in the US, Europe, and Japan can independently approve capital investments averaging $50,000, whereas owners in developing countries like India, China, and Brazil delegate almost no authority and require owner sign-off on purchases as small as $25.Observational StudyPolicy & public sectorRegional Implementation HeterogeneitySouthern Jutland delegated over 80% of treatment cases to private contractors (vs. ~40% for controls), yielding lower meeting frequencies (~30% weekly) but stronger threat effects; Storstrøm retained public administration (30% contractor usage) with higher meeting intensity (~40% weekly) but weaker threat-driven exit rate responses.RCTEconomics (general)Rule-of-Law Deficit and Expropriation FearDeveloping nations with weak legal enforcement display near-zero delegation of employment, capital investment, and pricing decisions compared to developed nations where plant managers independently approve up to $50,000 in capital expenditures.Observational StudyFirms & operationsLegal Enforcement Deficits and Decentralization Barriers100% of surveyed firms were family-owned and managed; zero non-family managers held financial or procurement decision-making authority prior to management practice interventions.Observational StudyFirms & operationsRule of Law Infrastructure and Managerial Expropriation RiskWeak legal enforcement directly inhibits decentralization, as owners refrain from granting operational autonomy due to fear of unpunished theft, keeping managerial decision-making highly centralized compared to developed nations.Observational Study