Management Standard Certification and Firm Productivity: Micro-evidence from Africa

Abstract

Using micro evidence from manufacturing and services firms located in 41 African countries, this paper shows that better management practice, reflected by international management certification, helps firms to raise productivity. Larger and older firms and firms operating closer to the technological frontier are more likely to possess international management standards certification, as do firms engaged in international transactions. Certification in turn raises productivity levels further, in line with a process of continuous improvement. The findings hold for both manufacturing and services firms.