{"title":"Product market competition and management quality among small and medium-sized enterprises: Evidence from Burkina Faso","authors":"S. Gansonré, S. A. Ouédraogo","doi":"10.1080/13571516.2022.2088987","DOIUrl":null,"url":null,"abstract":"Abstract We examine how management quality is related to product market competition when firms are managed by their founders instead of hired managers. While the relationship between competition and managerial incentives is mostly found to be ambiguous in theory, testing it empirically has been challenged by the lack of robust quantitative data. Using a survey on Small and Medium-sized Enterprises from Burkina Faso, we measure management quality, building on the Management and Organizational Practices Survey, and find suggestive evidence that management quality increases with competition. Although the results are robust across a range of measures of competition and sub-indicators of management quality, no significant association is observed in larger firms.","PeriodicalId":45470,"journal":{"name":"International Journal of the Economics of Business","volume":"11 1","pages":"161 - 182"},"PeriodicalIF":1.9000,"publicationDate":"2022-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of the Economics of Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/13571516.2022.2088987","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract We examine how management quality is related to product market competition when firms are managed by their founders instead of hired managers. While the relationship between competition and managerial incentives is mostly found to be ambiguous in theory, testing it empirically has been challenged by the lack of robust quantitative data. Using a survey on Small and Medium-sized Enterprises from Burkina Faso, we measure management quality, building on the Management and Organizational Practices Survey, and find suggestive evidence that management quality increases with competition. Although the results are robust across a range of measures of competition and sub-indicators of management quality, no significant association is observed in larger firms.
期刊介绍:
International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.