MANAGEMENT PRACTICES AS DRIVERS OF PRODUCTIVITY GROWTH: A CROSS-COUNTRY PERSPECTIVE

Productivity growth remains one of the central determinants of long-run economic prosperity, yet many advanced and developing economies have experienced a persistent slowdown in productivity growth over the past two decades. While technological innovation, capital deepening, and human-capital accumulation are well-established contributors to productivity, an expanding body of economic research emphasizes the pivotal role of managerial quality and organizational practices in determining firm-level and aggregate productivity. This article examines the mechanisms through which management practices contribute to productivity growth across countries, drawing on theoretical frameworks and empirical evidence from comparative management research. It analyzes why substantial cross-country variation in management quality persists, how organizational structures interact with technology adoption and labor productivity, and what policy and institutional factors shape firms’ incentives to invest in better management. The article concludes by discussing implications for policymakers seeking to foster productivity-enhancing organizational innovation, especially in economies struggling with stagnant productivity.