Promoting adoption of management practices from the outside: Insights from a randomized field experiment

Abstract

Abstract We conducted a Randomized Controlled Trial (RCT) to explore the role of government information intervention on a firm's management practices and performance. Specifically, we studied whether providing managers with information regarding the benefits of Quality Management practice (QM) can enable government to influence manager perception and adoption of QM, output quality, and firm performance. Our main finding demonstrates that the information intervention improves manager perception of QM benefits; this, in turn, encourages managers to adopt QM, leading to improvements in quality and firm performance.

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