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Lack of experience with the most efficient management practices often keeps firms in developing economies from innovating to the extent they otherwise might. Because there can be many moving pieces in a firm’s internal innovation process, good management practices can help reduce the time and expense associated with innovating, while helping to maximize the productivity gains that come from releasing new products or processes.
Indeed, an analysis of 3,000 Vietnamese manufacturing firms found those that adopted internationally recognized best practices for management, such as the widely known ISO 9001 and ISO 14001 standards from the International Organization for Standardization, were 69 percent more productive from 2011 to 2015 than firms without such certifications.