Middle management, geographic frictions, and firm establishments

Abstract

"Distance and other geographic frictions between firms' headquarters and their establishments have a negative effect on performance. This column shows that hiring middle managers helps firms mitigate the impact of geographic frictions, by improving the efficiency of management resources. Factors affecting the efficiency of a local establishment have knock-on effects for the whole firm, regardless of distance." (Author's abstract, IAB-Doku) ((en))

Cite article

Gumpert, A., Steimer, H. & Antoni, M. (2019): Middle management, geographic frictions, and firm establishments. In: VOX No. 24.10.2019, o. Sz.