International Differences in the Business Practices and Productivity of Firms

Recently, a series of shocks have affected management practices in firms all over the world. For one, the dramatic decline in the cost of information processing has led to increased adoption of new information technologies. A second shock is the dramatic change since the 1970s that has occurred in the method of organizing work. Teamwork is becoming increasingly popular, and the majority of firms use some sort of teamwork or group problem-solving at virtually all levels of the hierarchy. Finally, lower communication and transportation costs allow greater access to cheap labor. As a result, firms have become more multinational than ever before. All of these issues have had a variety of effects on the productivity and managerial practices of firms and render further examination of international firms and their data necessary, an argument at the crux of International Differences in the Business Practices and Productivity of Firms and driving the research involved in this book. Editors Richard Freeman and Kathryn Shaw bring together eight studies that combine qualitative and quantitative insider analysis to examine the phenomenon of widespread differences in managerial practices across firms, across establishments within firms, and across countries. Their focus is on the elements that determine which practices are adopted and why, and what determines whether those practices increase productivity. In doing so, they hope to create a much-needed model for measuring the productivity and performance of international firms.