Management Practices as Capabilities Leading to Superior Performance

Abstract

This paper has three main contributions to the debate about the value of management practices. First, the empirical confirmation of a strong and significant relationship between the level of management practices and three major dimensions of firms' performance (profitability, growth and productivity). The value of this contribution is grounded on a survey of 124 companies in a focused and careful choice of context: packaging industry in an emerging country, Brazil. Second, our theoretical conceptualization of management practices as capabilities addresses recent criticism of the Resource-based Theory and suggests there is no need for a new theory as the proposed Practice-based View. The third main contribution relates to the factors that affect the development of management practices. We confirmed that larger firms tend to have higher levels of management practices, although no support was found for the influence of another factor, the family ownership. We also identified that managerial hubris can be seen as a new strong factor negatively affecting the development of higher levels of management practices. Finally, the findings of this paper can bring attention to management as a new, internal component of the so-called Custo Brasil (Brazilian Cost) and its practical effect on the competitiveness of the Brazilian firms.

Lean R&D practices and its impact on organizational performance: evidence from R&D-based manufacturers in Malaysia

“…The results of the hypotheses obtained from the PLS analysis suggests that managerial practices, employees' skills and expertise and supplier involvement have significantly and positively influenced R&D firms' performance. This finding is consistent with that of previous studies in a non-R&D setting (Brito and Saisan, 2016;Larteb et al, 2015;Carr and Pearson, 2002). Brito and Saisan (2016) revealed that proficient lean managerial practices in terms of planning, organizing, implementation and control have optimized resource utilization and enhanced firms' performance.…”

Performance drivers in knowledge-intensive entrepreneurial firms: a multidimensional perspective

“…Instead, iterative and learning capabilities related to an effectuation perception of the entrepreneurial event can provide firms with competitive edges that do not require traditional planning and control practices (Sarasvathy, 2001). In any case, innovation-driven entrepreneurial firms in Brazil often lack managerial and organizational capabilities (Cahen et al , 2016; Brito and Sauan, 2016), thus revealing an overall need for KIE firms to further develop such skills.…”

Management practices and competitiveness: A multisector study in the Brazilian industry

“…The studies conducted with Brazilian companies support the heterogeneity of management practices, but limitations in their sample sizes (Padrão, Motta, & Vieira, 2009) and in their focus on single industries (Brito & Sauan, 2016;Mauro & Brito, 2011) jeopardize more detailed assessment of this phenomenon. Therefore, we include the following hypothesis for the relationship between sectoral competition and the level of companies' management practices: BAR, Rio de Janeiro, RJ, Brazil, v. 15, n. 4, art.…”

“…BAR, Rio de Janeiro, RJ, Brazil, v. 15, n. 4, art. 4, e180028, 2018 www.anpad.org.br/bar Data collection followed the procedures adopted by Bloom and Van Reenen as well as by studies that have already replicated those authors' research in Brazil (Brito & Sauan, 2016;Mauro & Brito, 2011;Padrão et al, 2009). Based on those studies, we evaluated seven topics: Management Operations, Human Resources and Incentives, Goals, Performance Control, Sustainability, Technological Innovation and Innovation in Management.…”