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Estimates of the Productivity of Management Practices in Local Agribusiness Firms
Author(s) -
Baumel C. Phillip,
Fuller Wayne A.
Publication year - 1964
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1236519
Subject(s) - agribusiness , productivity , business , agricultural economics , industrial organization , agricultural science , economics , agriculture , environmental science , geography , economic growth , archaeology
Abstract In this study, the level of income and profit of a sample of firms was correlated with indices of management practices and of environment. The indices were included in a production function and a reduced form equation. Management indices were constructed for areas of management defined as personnel and member relations, retail credit, inventory and wholesale merchandising, and strategic planning and sales management. Environmental indices were constructed for personal characteristics of the manager, competition and the board of directors. The indices made a significant contribution to the explanation of both total income and return on fixed investment. The results suggest that it is feasible to construct measures of management behavior and to associate these measures with firm profitability.