Competition, agency and productivity

Mark Rogers

Research output: Contribution to journalArticlepeer-review


This article tests a set of hypotheses relating to agency and Schumpeterian views on how competition affects performance. A survey data set of Australian workplaces is used, with the change in labour productivity as the dependent variable. The results show strong support for the idea that intense competition raises productivity growth in managerial workplaces, but not in non-managerial workplaces (i.e. where the principal owner also works). Testing the agency theories in more detail, we find no evidence that the number of competitors, the price elasticity of demand or a proxy for bankruptcy (pre-tax losses) are the mechanisms behind the process. For non-managerial workplaces the results indicate support for the idea that greater demand uncertainty reduces productivity growth. In contrast, for managerial workplaces, greater demand uncertainty tends to raise productivity growth.
Original languageEnglish
Pages (from-to)349-367
Number of pages19
JournalInternational Journal of the Economics of Business
Issue number3
Publication statusPublished - Nov 2004


  • competition
  • agency
  • schumpeterian
  • productivity


Dive into the research topics of 'Competition, agency and productivity'. Together they form a unique fingerprint.

Cite this