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The contribution of management to economic growth : a review

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Glaister, Keith W. (2015) The contribution of management to economic growth : a review. Prometheus: Critical Studies in Innovation, Volume 32 (Number 3). pp. 227-244. doi:10.1080/08109028.2015.1023646 ISSN 0810-9028.

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Official URL: http://dx.doi.org/10.1080/08109028.2015.1023646

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Abstract

A review of the literature indicates that the contribution of management to economic growth has been largely obscured in theory and ignored in empirical work. In contrast, the place of the entrepreneur in the process of growth is well recognised and widely accepted. The main goal of this paper is to develop an argument for the place of management in the process of growth, and to maintain that in the modern free market economy management’s role is at least as important as that of the entrepreneur. Routine innovation in established firms is emphasised as a fundamental, normal part of management activity, and as such highlights the importance of management for economic growth. However, management is not homogeneous and the actions of managers differentially affect the performance outcomes of firms. Hence the quality of management, and the adoption of appropriate management practices, matters and directly impacts economic growth. In recognising that management makes a significant contribution, both in terms of ensuring efficiency in the use of factor inputs and effectiveness in terms of driving incremental innovation, new research is necessary at the firm level in order to develop this understanding.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Economics, Economic development, Entrepreneurship, Endogenous growth (Economics)
Journal or Publication Title: Prometheus: Critical Studies in Innovation
Publisher: Routledge
ISSN: 0810-9028
Official Date: 24 March 2015
Dates:
DateEvent
24 March 2015Available
Volume: Volume 32
Number: Number 3
Page Range: pp. 227-244
DOI: 10.1080/08109028.2015.1023646
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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