Spatial Gaps in Management Quality : Evidence from a Lagging Region in Croatia
Embedding management and operational practices survey in a broader firm capabilities survey, this report finds that: (i) relative to the rest of Croatia, an average firm in the lagging region of the country (Eastern Croatia) is only slightly behind...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/867411586782957423/Spatial-Gaps-in-Management-Quality-Evidence-from-a-Lagging-Region-in-Croatia http://hdl.handle.net/10986/33607 |
| Summary: | Embedding management and operational
practices survey in a broader firm capabilities survey, this
report finds that: (i) relative to the rest of Croatia, an
average firm in the lagging region of the country (Eastern
Croatia) is only slightly behind in the adoption of
structured management practices. Nevertheless, overall,
Croatia is farther from a frontier economy such as the
United States. (ii) There is wide heterogeneity in adoption
of management practices in the country, such that a large
share of firms in the lagging region are badly managed
relative to those in the rest of the country. (iii) Better
managed firms in all regions, including Eastern Croatia,
show superior firm performance. What drives better
management? Global linkages matter for firms in other
countries and in all regions of Croatia except the lagging
region. Unlike other countries, firms in Croatia do not
upgrade management quality as they age, perhaps due to lack
of pro-competitive forces. This report recommends focusing
on policies that improve allocative efficiency in the region
and help firms establish global linkages, and more direct
intervention for improving the management quality of firms. |
|---|