Due to advances in data gathering, management practices have started to emerge as another piece in the empirical productivity puzzle. After the development of a quantitative survey tool named the Management and Organizational Practices Survey (MOPS), studies have found cumulating evidence for the significance of management practices in explaining productivity dispersion.

Data collected with the recently conducted Finnish Management and Organizational Practices Survey (FMOP) is used to examine management practices in Finnish manufacturing establishments. Helsinki-Uusimaa is compared to the other large areas of Finland to determine whether there are significant cross-regional differences in the quality of management practices. An Olley-Pakes decomposition is used for a cross-regional comparison of the components of the aggregate (employment weighted) management score. Furthermore, a moment-based estimation procedure is utilized to allow for statistical inference about the components of the decomposition.

No statistically significant cross-regional differences in the quality of man-agement practices are found in Finnish manufacturing establishments.