THE EFFECT OF MANAGEMENT PRACTICES ON FIRM PERFORMANCE USING MANAGEMENT PRACTICE INDEX IN PAKISTAN

Abstract

This study examines the effect of management practices on firm performance in Pakistan by constructing a comprehensive Management Practice Index (MPI). Using firm-level data from Pakistani enterprises, the research investigates how variations in managerial practices improve sales growth. Employing econometric techniques of OLS, the study finds that better management practices are strongly and positively associated with firm performance. The findings provide important implications for policymakers, business leaders, and researchers by highlighting management quality as a critical yet often overlooked determinant of firm performance in developing economies like Pakistan.