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EAFITEscuelasEscuela de Economía y FinanzasEsc. de Economía y Finanzas / Bulletin NewsProcess Standards and Management Practices: Evidence from Peru

Eventos / 09/09/2020

Process Standards and Management Practices: Evidence from Peru



This paper explores the role of adoption costs as a determinant of managerial upgrading and proposes a feasible way to promote the adoption of better management practices by firms. Using a regression discontinuity strategy, I show that a subsidy to certify process standards, such as ISO 9001, increases certification probability and, additionally, induces the adoption of modern management practices that are beyond the standards' scope. Managerial improvement is concentrated in monitoring and target-setting practices, while no change is detected in practices related to incentives for employees. These findings are consistent with a model in which process documentation, which is required by the standards, and modern management practices are complementary and suggest that subsidizing the certification of process standards is a feasible way to improve management.​


David Alfaro - Development Economics, International Trade

Última modificación: 02/09/2020 9:28

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