The impact of specialized business training on business performance: A Field Experiment in Indonesia

Last registered on December 12, 2024
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Pre-Trial

Trial Information

General Information

Title
The impact of specialized business training on business performance: A Field Experiment in Indonesia
RCT ID
AEARCTR-0014988
Initial registration date
December 07, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
December 12, 2024, 11:21 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name
Andika Ayu Putri Ragil
Affiliation
KDI School of Public Policy and Management
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
On going
Start date
2024-01-19
End date
2025-10-31
Keywords
Other
Additional Keywords
Business and Development Economics
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study examines the impact of existing levelling business training (combining classroom, conventional, and mindset training), implemented by the Office of Cooperative and MSMEs in Central Java, Indonesia, on small enterprises’ performance, growth, business practices, and the decision to take loans. The main research question is whether five small experiments consisting of finance, operational and human resources, marketing, strategic branding, and public speaking or negotiation business training helps improve MSMEs’ growth, performance, business practice, and decision-making skills. We will conduct five small randomized controlled trials (RCT) with 507 firms in Central Java, Indonesia. The sampling frame will be the firms that have applied to the Levelling Business Training Program. At application, each firm needs to choose a training subject among: (a) marketing, (b) operational and human resources, (c) financial, (d) strategic branding, and (e) public speaking and negotiation. Our implementing partner will screen and select eligible firms---83 to 109 firms each for subjects (a)-(c), and 83 to 84 firms each for (d)-(e). After conducting a baseline survey with a total of 507 firms, researchers will randomly assign treatment and control in each subject group. Each program will have up to three levels of training, where at each transition, 25 firms will be removed. ---that is, for (a)-(c), 75 firms at Level 1, 50 firms at Level 2, and 25 firms at Level 3, while (d)-(e) will have 50 firms at Level 1, and 25 firms at Level 2. While our main specification will be measuring the reduced-form effects of Level 1 training, we will further investigate the local average treatment effects of Level 2 and Level 3 training.
External Link(s)

Registration Citation

Citation
Ragil, Andika Ayu Putri. 2024. "The impact of specialized business training on business performance: A Field Experiment in Indonesia." AEA RCT Registry. December 12. https://doi.org/10.1257/rct.14988-1.0
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
Levelling business training is a yearly business training program conducted by Balatkop (Office of Cooperative and SMEs in Central Java). The program is an Indonesian Ministry of Cooperative and SMEs pilot project to enhance business performance and scale-up MSMEs by providing training based on business needs and levels. The program targeted SMEs, small enterprises with a minimum revenue turnover of 10 million rupiahs or around USD700 per month, owners under 45 years old, and firms holding business identification numbers. The levelling business training consists of five different training subjects: (a) marketing, (b) operational and human resources, (c) financial, (d) strategic branding, and (e) public speaking and negotiation. Balatkop will conduct five days of intensive training in each experiment and level of training. The (a) – (d) experiment groups will have heavy content on management skills, especially the adoption of technology, and less of a psychological mindset.
Meanwhile, public speaking and negotiation training will fairly emphasize managerial skills and a psychological mindset. Besides, in each transition, firms will be given a mentoring program where they have to meet and discuss with the mentor regarding their business and adoption of the content provided in the classroom training before the elimination decision.
Intervention Start Date
2024-03-11
Intervention End Date
2024-10-25

Primary Outcomes

Primary Outcomes (end points)
Our primary outcomes are business performance and business practices.
Primary Outcomes (explanation)
Business performance includes number of employee, working hours, daily customer, sales, revenue, and profit. Meanwhile, business practice includes implementation of financial statement and bookkeeping, utilization sns for marketing, registration of brand and logo.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The experimental design includes five days training in each level of training for each treatment arms. Control arms in each section will not get any treatment.
Experimental Design Details
Not available
Randomization Method
Randomization done by computer.
Randomization Unit
The randomization unit is small firm.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
507 micro and small sized enterprises.
Sample size: planned number of observations
507 firms.
Sample size (or number of clusters) by treatment arms
Financial management: 75 treatment and 35 control
Management marketing: 75 treatment and 45 control
Operational and HRM: 75 treatment and 34 control
Public Speaking and Negotiation: 50 treatment and 33 control
Strategic Branding: 50 treatment and 34 control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
KDI School of Public Policy and Management
IRB Approval Date
2024-05-21
IRB Approval Number
2024-12
IRB Name
Universitas Gadjah Mada Research Ethics
IRB Approval Date
2024-09-17
IRB Approval Number
KE/UGM/071/EC/2024
Analysis Plan