Coping with COVID-19 : Does Management Make Firms More Resilient?
The spread of COVID-19 has disrupted firm operations on a global scale. Using a comprehensive data set that observes over 3,000 firms in 16 countries, including several developing countries, shortly before and after the pandemic, we relate firms’ structured management practices to post- COIVD-1...
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/829711611084759307/Coping-with-COVID-19-Does-Management-Make-Firms-More-Resilient http://hdl.handle.net/10986/35028 |
| Summary: | The spread of COVID-19 has disrupted firm operations on
a global scale. Using a comprehensive data set that observes
over 3,000 firms in 16 countries, including several developing
countries, shortly before and after the pandemic,
we relate firms’ structured management practices to post-
COIVD-19 outcomes, and report four main findings.
First, structured management practices are associated with
more limited downside impacts of the crisis on firm sales
and survival in manufacturing but not in services. Better
managed manufacturing firms, on average, experience a
smaller reduction in sales. Second, in both manufacturing
and services, structured management practice scores are
correlated with a firm’s ability to adjust or convert product
mix and shift to online work arrangements. Third, management
scores are not correlated with firm’s ability to adjust
on employment margins. Fourth, the resilience of better
managed firms is related primarily to incentive practices
and is uncorrelated with operations or targeting practices.
Monitoring practice scores show a modest correlation with
a firm’s ability to switch to remote work arrangements. |
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