Instrumental Variable Estimates of the Effect of Management Practices on Firm Performance in Korean Firms.

Policy makers as well as entrepreneurs pay much attention to the success of firms. This is because the performance of firms can promote directly and indirectly the economic growth in a country. For instance, after financial crisis in 1997, the Korean economy experienced the rapid recovery. It is rec...

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Publicado en:Journal of Labor Research Vol. 40; no. 1; pp. 106 - 126
Autores principales: Chang, Jieun, Kang, Youngho
Formato: Artículo
Publicado: Springer Nature Mar2019
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Mar2019
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      pub: Springer Nature
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        10.1007/s12122-018-9273-z
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        atl: Instrumental Variable Estimates of the Effect of Management Practices on Firm Performance in Korean Firms.
      aug:
        au:
          Chang, Jieun
          Kang, Youngho
        affil:
          Department of Social Sciences, Southwestern Oklahoma State University, 100 Campus Dr., 73096, Weatherford, OK, USA
          Department of Economics, Soongsil University, 369 Sangdo-Ro, Dongjak-Gu, Seoul, Republic of Korea
      su:
        Government policy
        Businesspeople
        Business enterprises
        Economic development
        Industrial productivity
      sug:
        subj:
          Government policy
          Businesspeople
          Business enterprises
          Economic development
          Industrial productivity
      keyword:
        C20
        Instrumental variables
        L2
        M1
        Management practices
        Organizational change
        Total factor productivity
        C20
        Instrumental variables
        L2
        M1
        Management practices
        Organizational change
        Total factor productivity
      ab: Policy makers as well as entrepreneurs pay much attention to the success of firms. This is because the performance of firms can promote directly and indirectly the economic growth in a country. For instance, after financial crisis in 1997, the Korean economy experienced the rapid recovery. It is recognized that the improvement of firm performance has played a crucial role in such recovery. We focus on the determinants of improving the Korean firm total factor productivity (TFP) because TFP can explain performance not explained by inputs a firm employs. This paper suggests management practices as one of crucial factors to improve firm TFP. For empirical analysis, we use an instrumental variable approach by using a set of four firm-level instrumental variables including motivations for organizational change, large-scale organizational change, empowerment, and IT investment during the past organizational change. The results of the instrumental variable estimation show that better management practice leads to a higher level of firm TFP, statistically significantly; whereas the effect of management practices is statistically insignificant in the ordinary least square estimation.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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