Firm-Level Productivity and Management Influence: A Comparison of Us and Japanese Automobile Producers,"

Firm-Level Productivity and Management Influence: A Comparison of Us and Japanese Automobile Producers," (1990)

by M B Lieberman, L J Lau, Williams

Venue:

Management Science

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MANAGING WITH STYLE: THE EFFECT OF MANAGERS ON FIRM POLICIES

by Marianne Bertrand, Antoinette Schoar , 2003

"... This paper investigates whether and how individual managers affect corporate behavior and performance. We construct a manager-firm matched panel data set which enables us to track the top managers across different firms over time. We find that manager fixed effects matter for a wide range of corpora ..."

Abstract - Cited by 251 (7 self) - Add to MetaCart

This paper investigates whether and how individual managers affect corporate behavior and performance. We construct a manager-firm matched panel data set which enables us to track the top managers across different firms over time. We find that manager fixed effects matter for a wide range of corporate decisions. A significant extent of the heterogeneity in investment, financial and organizational practices of firms can be explained by the presence of manager fixed effects. We identify specific patterns in managerial decision making that appear to indicate general differences in “style” across managers. Moreover, we show that management style is significantly related to manager fixed effects in performance and that managers with higher performance fixed effects receive higher compensation and are more likely to be found in better governed firms. In a final step, we tie back these findings to observable managerial characteristics. We find that executives from earlier birth cohorts appear on average to be more conservative; on the other hand, managers who hold an MBA degree seem to follow on average more aggressive strategies.

Bridging Ties: A Source of Firm Heterogeneity in Competitive Capabilities

by Bill McEvily, Akbar Zaheer , 1997

"... What explains differences in firms' abilities to acquire competitive capabilities? In this paper we propose that embeddedness, in terms of firms' network of bridging ties and linkages to regional institutions, are important sources of variation in firms' acquisition of competitive cap ..."

Abstract - Cited by 202 (3 self) - Add to MetaCart

What explains differences in firms' abilities to acquire competitive capabilities? In this paper we propose that embeddedness, in terms of firms' network of bridging ties and linkages to regional institutions, are important sources of variation in firms' acquisition of competitive capabilities. We argue that firm networks rich in bridging ties and firms' participation in regional institutions are critical vehicles for accessing new information, ideas, and opportunities leading to the acquisition of competitive capabilities in geographical clusters. Hypotheses are tested on a stratified random sample of 227 job shop manufacturers located in several regions of the US Midwest using data gathered from a mailed questionnaire. Results from structural equation modeling broadly support the embeddedness hypotheses and suggest a number of novel insights about the link between firms' networks and competitive capabilities.

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Capital productivity and the nature of competition

by Axel Börsch-supan, Prof Axel Börsch-supan, Ph. D - Brookings Papers on Economic Activity (Microeconomics , 1999

"... ..."

Abstract - Cited by 14 (8 self) - Add to MetaCart

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Should inventory policy be lean or responsive? Evidence for US public companies. Working Paper

by Serguei Roumiantsev, Serguei Netessine , 2005

"... Abstract: Using financial accounting panel data from the COMPUSTAT database for a representative sample of 722 manufacturing, retailing and wholesaling companies accounting for 30 % of US business inventories, we develop a statistical methodology that links managerial decisions related to inventory ..."

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Abstract: Using financial accounting panel data from the COMPUSTAT database for a representative sample of 722 manufacturing, retailing and wholesaling companies accounting for 30 % of US business inventories, we develop a statistical methodology that links managerial decisions related to inventory with accounting returns. We find that superior earnings are associated with the speed of change/responsiveness in inventory management, after controlling for industry- and firm-specific effects. Namely, we find that, in the pooled sample, inventory elasticity with respect to sales, lead times and sales uncertainty is consistently positively associated with both current and forwarded returns on assets. This result provides statistical evidence that public companies that are more responsive in inventory management are, on average, more profitable. Furthermore, we show that higher relative volatility of sales and longer lead times are negatively associated with profitability, due to difficulties in matching supply with demand. Surprisingly, we find no support for the “lean operations ” principle: inventory levels alone do not have a significant and negative relation with current or future profitability. Our findings indicate the importance of matching supply with demand when (i) the environment is volatile and (ii) demand is nonstationary, such that responsiveness in inventory management matters more to profitability than do absolute inventory levels.

Deployment of manufacturing flexibility: An empirical analysis of the North American automotive industry. Working paper

by Manu Goyal, Serguei Netessine , 2006

"... The ability to manufacture several products on the same production line and switch seamlessly among them allows a firm to both hedge against demand uncertainty and respond to competition. In this paper, we empirically analyze the deployment of manufacturing flexibility in the North American automoti ..."

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The ability to manufacture several products on the same production line and switch seamlessly among them allows a firm to both hedge against demand uncertainty and respond to competition. In this paper, we empirically analyze the deployment of manufacturing flexibility in the North American automotive industry. In particular, we track demonstrated ability to manufacture automobiles with different platforms at 70 assembly plants over a period of eight years. We find that the usage of flexibility varies and, consistent with extant theory, flexible capacity is used to manufacture products with high demand uncertainty and low demand correlation. Moreover, we find strong evidence that automotive manufacturers use flexibility as a “competitive weapon”; flexibility is deployed in market segments in which there are a larger number of flexible competitors. However, this use of flexibility as a competitive weapon may not be optimal, as suggested by lower plant productivity. ∗The authors gratefully acknowledge financial support from the Mack Center for Technological Innovation. We are indebted to Marcelo Olivares for assistance with estimating demand model and we are grateful to employees of Harbour Associates for helpful discussions. 1

2008-04 The Determinants of Managerial Decisions Under Risk ∗

by Martin G. Kocher, Ganna Pogrebna, Matthias Sutter, Martin G. Kocher, Ganna Pogrebna, Matthias Sutter , 2008

"... as well as Stefan Trautmann for many helpful suggestions and comments. We also thank the Austrian Science Foundation (Fonds zur Förderung der wissenschaftlichen Forschung in Österreich, Project P16617) for financial support. ..."

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as well as Stefan Trautmann for many helpful suggestions and comments. We also thank the Austrian Science Foundation (Fonds zur Förderung der wissenschaftlichen Forschung in Österreich, Project P16617) for financial support.

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