1. Bundles of practices versus TQM principals and their impact on productivity [in Swedish firms] by Annette Nylund Comments by Elif KÖKSAL-OUDOT OECD - STI/EAS Université Paris 1 Panthéon - Sorbonne Saltsjöbaden, 5 October 2011

2. Outline The paper Main results Improvement suggestions Questions

3. The paper Aim: Confront bundles of practices vis-à-vis Total Quality Management (TQM) in explaining labour productivity of the Swedish business sector Data: Firm-level data from the Swedish Meadow Survey (matched with CIS and ICT survey) Descriptive analysis: Principal components analysis Econometrical analysis: OLS regressions with VA/EMP as dependent and the two management models (indices) as explanatory variables

4. The paper Two management models:  Bundles of practices: 1- Teamwork and documenting work practices 2- Customer and quality focus 3- Numerical flexibility 4- Individual learning 5- Decentralisation and flex-time 6- Business intelligence 7- Rotation and multi-task  Total Quality Management: 1- Problem solving teams 2- Investment in training 3- CEOs responsibility for changes throughout the organisation 4- Supplier relation 5- Customer preferences 6- Benchmarking

5. Main results Bundles of practices reveal seven strategies used simultaneously but also alternatively by Swedish firms (reorganisation of the 4 composite indicators produced on the basis of earlier surveys) Not all the TQM components can be analysed through ACP (MEADOW data limitations) => TQM (seems) less homogenously present in Swedish firms Bundles of practices have a better predictive capacity on labour productivity in Swedish firms compared to TQM.

6. Improvement suggestions Technical document vs. academic paper Paper should be readable alone Add a management literature review Background information on MEADOW but also on CIS and ICT survey Visualisation of the data Put the MEADOW questionnaire in annex Remove “textbook” explanations on fundamentals

7. What is the theoretical background? How this article contributes to literature? ▫Endogenous growth ▫But also institutional economics (O. Williamson, 1995) since the focus is on organisation in firms Why these two management models? Transition from 4 composite indicators to 7 bundles? General questions

8. On the principal component analysis: -Why do we need it? Benefits? -Choice of the rotation method: VARIMAX vs. OBLIMIN? On the OLS estimations: -Endogeneity ? -Lagged productivity? -More control variables? -Industry-specific effects? Technical questions

9. Future developments Research agenda? Any difference in results in terms of firm age? Other dependent variables (TFP, innovation…)?

10. For further discussion: elif.koksal-oudot@oecd.org ekoksal@wanadoo.fr