Management quality and productivity

An empirical investigation into the relationship between the management quality of Dutch manufacturing firms and their productivity, innovativeness and portfolio of international activities.
A sufficient answer to the question why productivity levels of comparable firms vary so much is still lacking, even though this is a question of great importance to academics and policymakers. In this report we show for Dutch manufacturing firms that measuring the quality of management constitutes part of the answer: higher management quality is accompanied by higher productivity levels. We also investigate to what extent innovativeness and internationalization moderate the relationship between management quality and productivity.