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

Abstract

The Practice-Based View (PBV) is an insightful approach among alternative theories of firm competitiveness. However, it hardly addresses industry level effects on the adoption of management practices and consequent performance impacts. We investigate if industrial sectors that are technologically sophisticated, more exposed to competition, and receiving greater government support adopt more advanced management practices and achieve superior performance. We built an intentional sample in seven industrial sectors, representative of the diversity of local industry, by selecting ten firms in each sector following specific criteria. Data collected following the method proposed by Bloom and Van Reenen was analyzed through Ordinary Least Squares regressions designed to assess our hypotheses. The outcomes confirm previous findings and reveal two insights. First, governmental support does not necessarily enhance management practices at the firm level. Second, the relationship between practices and performance seems to be jeopardized by the turbulence of the local business environment. We contribute to the PBV by shedding light on the implications of the sectoral perspective for the analysis of best practices adoption and performance impacts.