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Developed-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 [8, 10].
The supply of male family members was more than three times more important in explaining firm size than management practice scores (R-squared reduction of 10.1% versus 3.3%). Adopting systematic management practices increased delegation to plant managers (z-score coefficient 0.103, p < 0.05) and led treatment firms to open 0.217 to 0.259 additional plants compared to control firms and industry baselines.
Middle 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.
Southern 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.
Developing 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.