Source · aikyam school

Do Management Interventions Last? Evidence from India

Original source

Nicholas Bloom; Aprajit Mahajan; David McKenzie; John Roberts

Do Management Interventions Last? Evidence from India

Dated research draft · Version date: 20 June 2018

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Asymmetric Management Practice Stickiness

"Of our 38 practices, once adopted, 14 are not dropped by a single plant, and a further 8 are dropped by at most one-quarter of adopters... Particularly noticeable among these sticky practices are that those which were adopted by 10 or more plants and then never dropped."

Baseline Practice Prevalence as Persistence Predictor

"...the positive coefficient indicates that common practices were more likely to be maintained (so uncommon practices were more likely to be dropped). This highlights that the intervention was more successful at getting badly managed plants to adopt relatively standard practices..."

Cross-Functional Management Complementarity

"Improving production and human-resource management practices led firms to value a more data-driven, systematic management approach, and hence apply this to other areas like marketing."

Executive Attention Bottleneck

"Another major factor across all the plants was director time – overall 3.6% of practices were dropped when directors had to reduce the time they spent managing the plant, often because of other business commitments..."

Inter-Firm Knowledge Spillover Failure

"...while few management practices had demonstrably spread across the firms in the study, many had spread within firms, from the experimental plants to the non-experimental plants, suggesting limited spillovers between firms but large spillovers within firms."

High First-Year Return on Management Consulting

"These improvements were estimated to have increased profits per plant by about $325,000 per year. We estimate that this represented, on average, a 130% one-year return on the market cost of the consulting services."