Medium-Run Impacts of Management Training in Garment Clusters

This paper investigates the impact of management training programs on garment clusters in Vietnam and Tanzania. The study found that in the medium run firms showed improvement once they had identified useful practices and adapted them to their operations. Although it takes a few years to experience a significant impact on incomes, management training can increase not just management scores but also incomes or value added.

Policy implications 
The effects on business performance of support schemes that aim to increase the adoption of good practices are likely to show in the medium term, after an assimilation period during which firms try out different practices to identify and focus on the useful ones. The majority of firms are located in industrial clusters, where knowledge tends to spill over, and they may not know the value of learning about management. Such spillovers and ignorance which become a cause of market failure, together with the favorable training effects, create ample scope for policy.
Higuchi, Y., Mhede, E. P., Nam, V. H., & Sonobe, T., 2020. Medium-run impacts of management training in garment clusters. The World Bank Economic Review, 34(Supplement_1), S68-S71.