Effect of a Management Intervention on Firm Performance and Quality Defects

Bibliographic Data

ID4362787
AuthorsMahvish Faran (Trade and Industry Department), Karl Taylor (0000-0002-6525-0815, IZA - Institute of Labor Economics, corresponding author)
Year2025
Volume73
Issue3
Pages1365-1408
Publication date2025-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/730922
OpenAlexW4394876774
LanguageEN
References cited23

We use a novel firm-level dataset from a garments manufacturer in Pakistan to investigate the effect of a new quality management monitoring practice on firm performance and daily defects. We provide evidence that the intervention generally had a negative correlation with firm performance for those lines at the extreme ends of the complexity spectrum. Evidence consistent with a quantity-quality trade-off is also found, in that while the implementation of the new management practice was generally adversely associated with all aspects of firm performance, it had the desired effect of reducing the number of daily quality defects observed after the intervention

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