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What the Most Productive Companies Do Differently

Harvard Business Review · Article · 16 Feb 2023 · Empirical research · Paywalled · Editor's rating: ★★ Recommended

Large productivity gaps between leading and lagging firms in each sector show that firm-level strategy choices drive productivity advantage.

Summary

Atkins, Padhi and White note that U.S. productivity growth has slowed to 1.4% a year, and restoring the long-term trend could add $10 trillion in GDP by 2030. Their research finds striking differences within sectors, with manufacturing leaders operating at 5.4 times the productivity of laggards and similar gaps in services. They identify four strategies the most productive companies share and argue that firms have a central role in reviving

Editor's opinion

Documents a real, large productivity dispersion within sectors (5.4x gap) and ties it to firm-level strategic choices -- a genuine industrial-economics finding.

Key concepts

Firm productivity gaps · Leaders versus laggards · Productivity strategies

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