Discussion paper

DP15987 Management practices and resilience to shocks: Evidence from COVID-19

Do organizational practices help or hinder the firm's capacity to adapt to a changing environment? We use the spread of COVID-19 in Italy, the first Western country hit by the pandemic, to investigate the role of structured management practices in responding to a large shock. We find a sizable, positive effect of structured management practices on firm performance: a one-standard deviation increase in the management score reduces the drop in year-ahead expected sales by 30 percent. Evidence points to the fact that firms with more structured practices were more likely to implement a comprehensive set of changes, such as demand, supply chain and labor management, including more intense use of remote work.


Lamorgese, A, A Linarello, M Patnaik and F Schivardi (2022), ‘DP15987 Management practices and resilience to shocks: Evidence from COVID-19‘, CEPR Discussion Paper No. 15987. CEPR Press, Paris & London. https://cepr.org/publications/dp15987