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

This study is part of the movement in the literature that supposes that entrepreneurship is an important factor in economic development and growth. A company’s success or failure is largely determined by the quality of corporate decisions made by the entrepreneur. However, since business decisions are intangible, their impact on a company’s performance is difficult to measure. This analysis aims to quantify the impact of business decisions. To measure intangibles, indexes were developed to measure a company’s management practices and long-term strategic directions, much like those developed by Bloom and Van Reenen (2007) and Brouillette and Ershov (2014).