Why are some companies more productive than others? And why do certain divisions within those companies perform better than others do? Research has shown that top performers tend to invest more in research and development, adopt better technology, and employ a more educated workforce.

But a new study suggests another surprising factor plays as much or more of a role: strong management.

Nicholas A. Bloom, an economics professor at Stanford Graduate School of Business and the university’s School of Humanities and Sciences, and other researchers partnered with the U.S. Census Bureau to survey more than 35,000 U.S. manufacturing plants in 2010 and 2015. They found that management practices accounted for about one-fifth of the variation in productivity among plants. Management style had the same effect as R&D spending—and twice the impact of technology spending—in explaining productivity differences.

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