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Study: The Relationship between Management Practices, Long-Term Strategic Directions and the Economic Performance of Enterprises

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Released: 2019-04-02

A business's success or failure is largely determined by the quality of management decisions made by the entrepreneur. This study examines how the quality of these decisions affects the performance of businesses. Though the nature of business decisions is intangible, their impact on a business's performance is difficult to measure. This analysis aims to quantify the impact of business decisions.

The study presents indexes developed to measure business' management practices and long-term strategic directions, much like those developed by Bloom and Van Reenen (2007) and Brouillette and Ershov (2014).

Based on a linkage between data from Statistics Canada's 2012 Survey of Innovation and Business Strategy, administrative data and data from the Business Register, this analysis reveals that these indexes are statistically significant, but have a low impact on the performance of businesses.


The research paper "The Relationship between Management Practices, Long-term Strategic Directions and the Economic Performance of Enterprises," part of Reports on Special Business Projects (Catalogue number18-001-X), is now available.

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