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Development of management capability scores

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Staff Research Paper 10/2019
Publication Date: 
September 2019

This paper develops firm-level management capability scores for Australian firms. It shows the association between these scores, firms’ characteristics, and performance measures.

Key findings:

  • Larger firms had higher overall management capability score than smaller firms.
  • Firms with some degree of foreign ownership tend to have higher scores of management capability than domestic owned firms.
  • Firms that are innovation active display significantly higher management capability scores than those that are not.
  • There is a positive and significant association between management capabilities and labour productivity.
  • There is a positive and significant association between supply chain management  and export performance.

These scores are replicable by other researchers and are important data items for future empirical research on management capability.

Authors: Renu Agarwal, Chris Bajada, Paul Brown, Ian Moran and Antonio Balaguer.

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