This study investigates the impact of management practices on productivity, with a focus on the moderating role of family ownership. The findings reveal that family ownership weakens the positive relationship between management practices and productivity, particularly in SMEs and the services sector. This adverse moderating effect primarily occurs in family-managed firms; however, introducing professional management in large firms and the services sector can mitigate the negative impact.
Meanwhile, baseline results indicate that a 10% improvement in management practice scores is associated with a 5.2% increase in labour productivity. The authors find no statistical evidence suggesting that the impact of management practices varies across firm sizes, underscoring their universal applicability. However, this effect is significantly lower in the manufacturing sector compared to the services sector.
Authors Yuchen Feng, Andrew Henley, Anna Kochanova
