Master's Culminating Experience
Firms appear to outperform their peers when defined as exhibiting increased productivity growth. Specific factors have been shown to have a causal effect upon increased total factor productivity and thus the firm level with the implementation of: the use and diffusion of technological progress; diversification of firm assets through the acquisition of high productivity growth plant assets; the integration of information technology and information communications technology and the creation of innovative capacities and efficiencies. Likewise, specific factors have been shown to have a causal effect upon increased labor productivity and thus firm level productivity growth: the sharing of employee experiences and learned knowledge; increased human capital through the training and education of the firm's employee base; access to a larger urban pool of highly skilled and educated workers; the retention of long term employees that add value through firm level knowledge and processes; and creating and maintaining a culture that fosters both innovation and shared employee knowledge.
Potter, J. A.
(2011). What Drives Productivity Growth at the Firm Level and Why is it that Some Firms Outperform their Peers?. .