[Purpose] This study investigates how managers’ characteristics affect management efficiency in state-owned enterprises engaged in urban development. Managers are classified as internally promoted or externally appointed, with external recruits fu...
[Purpose] This study investigates how managers’ characteristics affect management efficiency in state-owned enterprises engaged in urban development. Managers are classified as internally promoted or externally appointed, with external recruits further divided into public institutions, civil service, private companies, and politics. The role of managerial professionalism is also assessed. [Methodology] Using Data Envelopment Analysis (DEA) and Tobit regression, the study examines managers’ career backgrounds and professional expertise to evaluate efficiency outcomes. [Findings] Three main results emerge: (1) exteral managers show lower efficiency than internal ones; (2) managers lacking understanding of public institutions perform worse; (3) among external managers, those without expertise are less efficient, but those with expertise and institutional knowledge outperform internal managers.
[Implications] The study contributes by linking the efficiency of state-owned enterprises to managerial background and professionalism, emphasizing that both understanding and experience of public institutions, as well as industry-specific expertise, matter. The methodological use of DEA and Tobit further strengthens the analysis.