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Paper Abstract
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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. We
test 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
the cost of the individual approach. Both approaches lead to improvements in management
practices of a similar magnitude (8-10 percentage points). The group-based intervention leads to
significant increases in firm sales, profits and labor productivity, while the impacts on firm
performance are smaller in magnitude and less robust from the individual consulting. The results
point to the potential of group-based approaches as a pathway to scaling up management
improvements.
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Paper Citation
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Leonardo Iacovone, William Maloney and David McKenzie (2022) "Improving Management with Individual and Group-Based Consulting : Results from a Randomized Experiment in Colombia", Review of Economic Studies, 89(1): 346-71
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Paper URL
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https://doi.org/10.1093/restud/rdab005
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