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Improving Management with Individual and Group-Based Consulting : Results from a Randomized Experiment in Colombia (English)

Differences in management quality are an important contributor to productivity differences across countries. A key question is how to best improve poor management in developing countries. This paper tests two different approaches to improving management in Colombian auto parts firms. The first uses intensive and expensive one-on-one consulting, while the second draws on agricultural extension approaches to provide consulting to small groups of firms at approximately one-third of the cost of the individual approach. Both approaches lead to improvements in management practices of a similar magnitude (8-10 percentage points), so that the new group-based approach dominates on a cost-benefit basis. Moreover, the paper finds some evidence that the group-based intervention led to increases in firm size over the next three years, while the impacts on firm outcomes are smaller and statistically insignificant for the individual consulting. The results point to the potential of group-based approaches as a pathway to scaling up management improvements.

Details

  • Author

    Iacovone,Leonardo, Maloney,William F., Mckenzie,David J.

  • Document Date

    2019/05/15

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS8854

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Colombia,

  • Region

    Latin America & Caribbean,

  • Disclosure Date

    2019/05/15

  • Disclosure Status

    Disclosed

  • Doc Name

    Improving Management with Individual and Group-Based Consulting : Results from a Randomized Experiment in Colombia

  • Keywords

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Citation

Iacovone,Leonardo Maloney,William F. Mckenzie,David J.

Improving Management with Individual and Group-Based Consulting : Results from a Randomized Experiment in Colombia (English). Policy Research working paper,no. WPS 8854,Paper is funded by the Knowledge for Change Program (KCP),Impact Evaluation series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/166671557929384690/Improving-Management-with-Individual-and-Group-Based-Consulting-Results-from-a-Randomized-Experiment-in-Colombia